Ofwat gave a formal City Briefing yesterday with presentations from Philip Fletcher, Chairman of Ofwat and Regina Finn, Chief Executive.
In a wide-ranging presentation, Philip Fletcher said the water companies were currently some £1.4 billion (15%) behind Ofwat’s original expectations for the first two years of the current price period - gross capital investment in 2006-07 was £4.35 billion, compared with £3.5 billion in 2005-06. Slippage constituted 96% of this, while only 4% was the result of efficiencies. Planning issues had contributed to some of the delays. Philip Fletcher said that Ofwat would continue to monitor each company and failure to deliver schemes which were assumed in price limits would be taken into account when Ofwat set price limits in 2009.
Regin Finn provided a more detailed analysis about Ofwat’s price review methodology, including the proposal that all companies must apply cost benefit analysis to all aspects of their business plan. The analysis will have to take full account of social and environmental costs and benefits, including the carbon impact. The water companies are already starting to give more substantial indication of what they are doing in relation to issues of climate change and carbon emissions. Ofwat is supporting further work on more comprehensive carbon accounting and plans to work with the industry to develop an agreed approach to measuring and reporting companies’ ‘carbon footprint’. Ofwat is also moving towards a requirement for companies to report on their carbon and greenhouse gas emissions in future June returns.
Regina Finn said
“These initiatives will allow a properly evidenced approach to carbon management in the industry to emerge, with transparency around the carbon implications of investments or changes to service expectations.”
Ofwat will require cost benefit analysis on all components of each company’s proposed investment programme in order to ensure transparency for consumers by showing the benefits alongside the costs of the investment they will have to pay.
With the UK government demanding a 50% reduction in storm overflow spills by 2029, the era of reactive management is over. Speaking in the House of Commons on 21 July 2025, then environment secretary Steve Reed said, “This Government will cut water companies’ sewage pollution in half by the end of the decade.”
ERG, the leading supplier of odour control systems and industrial gas cleaning & thermal systems, has been awarded the coveted King’s Award for Enterprise.
Welsh Water’s new artificial intelligence-driven tool, ORAI, has been shortlisted for three categories at the prestigious British Data Awards 2026 – underscoring the company’s commitment to using cutting-edge technology to deliver better outcome for customers.
Barhale has completed work on two separate Rapid Action Taskforce Spills projects it is carrying out for Severn Trent.
Hear how Scottish Water has completed its £235 million Ayrshire Glasgow Resilience Project - customers across Greater Glasgow, Ayrshire and East Renfrewshire will now benefit from a more secure and resilient water supply.
Hear how United Utilities is accelerating its investment to reduce spills from storm overflows across the Northwest.
Find out more about the remarkable career opportunities on offer at WSP - scroll down to watch the inspirational video.