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

To ask the Secretary of State for Environment, Food and Rural Affairs, with reference to the 2019 National Infrastructure Commission call for evidence on the future of regulation, what steps he is taking to develop a long term strategy on the (a) running and (b) regulation of the water industry.

Water is devolved however Ofwat is the economic regulator for England and Wales. At Budget 2020 the Government welcomed the NIC's report 'Strategic investment and public confidence' and agrees with its primary finding that the UK's system of economic regulation is working well, but it may need updating in some areas to address 21^st century challenges. The Government will respond in full to the study in due course.

Government and regulators continue to work with the industry to ensure a strategic approach to long term planning. Our Strategic Policy Statement to Ofwat sets out our long-term priorities for the sector, and how we expect the water companies to deliver for consumers and the environment. The three priorities are:

1) securing long-term resilience

2) protecting customers

3) making markets work

The current statement came into effect in 2017, and we are actively reviewing whether it remains fit for purpose.

In England, the Environment Agency, Ofwat and regional groups of companies are working together building on the existing water resource management planning process ensuring the industry invests in the right water supply infrastructure at the right time to meet future challenges. Similarly, the new Drainage and Wastewater Management Plans will ensure a long-term approach to wastewater treatment and drainage infrastructure.

Ofwat has published its future approach to regulation of the water sector in England and Wales, in its strategy, Time to Act Together, and established three strategic goals. These goals are to transform water companies' performance for customers, to meet long term challenges through partnership and collaboration and for companies to serve a wider public purpose by delivering more for customers, society and the environment.