Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, whether she has had recent discussions with OFWAT on a cap to the proposed increase in water bills.

Ofwat, as the independent regulator, sets an overall cap on the total amount that each water company may recover from their customers, through a 5 yearly process called the Price Review. This aims to ensure value for money in water company investments, including across increasing water resources, tackling leaks and environmental improvements. For the current price review period, the bills are capped until 31 March 2025. However, the charges each year can be adjusted for specific factors, such as inflation.

In October 2022, Ofwat and the Consumer Council for Water wrote to all water companies asking them to consider the challenges households are facing when setting their charges. We welcome the action undertaken by them to encourage water companies to share good practice on improving awareness of, and access to support measures for customers who may struggle with their bills