Under new powers given to Ofwat, water companies will be accountable not only for listening to customers’ views and feedback, but also for ensuring that these are considered in any decision-making processes that affect them.
Customers will now have a strengthened voice and more say in water company decisions which affect their bills, service quality and consumer protections.
Ofwat will also require companies to clearly set out their plans to comply with the rule, which will apply to all companies from 1 April 2026.
Ofwat acquired the new powers from the government under the Water (Special Measures) Act 2025 to set rules about remuneration and governance. The consumer involvement rule covers three areas:
- Ensuring that companies take decisions with an informed understanding of consumers' views and preferences.
- Creating decision-making arrangements within companies that involve consumers.
- Improving companies' understanding of the impact of past decisions on consumers.
Following the publication of the Independent Water Commission final report, the UK government has set out a new direction for the water sector with the formation of a new regulator in England. This marks an opportunity to reset the sector, so it delivers better outcomes for customers and the environment.
Ofwat commented:
"As the report states, this rule aims to strengthen consumer representation by offering direct engagement with consumers."
The rule on consumer involvement in company decision-making will apply to all water companies and new appointees. The rule will come into force on 1 April 2026 for incumbent water companies and on 1 April 2027 for new appointees (also known as NAVs).
The rule has been informed by feedback from engagement with a variety of stakeholders, as well as the responses from two consultations held in October 2024 and August 2025 which together attracted more than 11,000 responses.
Ofwat is now working with the government and other regulators on the formation of the new body in England, combining Ofwat with the Drinking Water Inspectorate and including elements of the Environment Agency and Natural England. The regulator will also continue to engage with the Welsh Government and contribute to discussions on the options for Wales.
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