Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment the Department has made of (i) the revenue generated by water companies as a result of increased water consumption during prolonged periods of dry weather, (ii) how that additional revenue is used and (ii) whether it should be taken into account when determining future increases in customers’ water bills.
Ofwat is the independent regulator of the water industry. Through the Price Review, Ofwat agrees allowed company spending on investment, maintenance, and returns. It then also set the revenues companies can reclaim from customers over the five-year period. The current allocations for each company remain on the Ofwat website.