Fri, Oct 16, 2026
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Regulation and Legislation

Water industry regulator Ofwat has today published its draft terms of reference for reviewing the costs and benefits of providing competition for retail water services to household customers in England.

Ofwat has said it will “carefully consider the thoughts of the PAC”, following publication of the House Of Commons Public Accounts Committee report which said over-estimating by the water regulator had led to the water companies making at least £1.2 billion in windfall gains over the last five years.

A report by the influential House of Commons Public Accounts Committee has strongly criticised Ofwat for consistently over-estimating water companies’ costs which led to £1.2 billion in windfall gains -  saying “these and other concerns..represent significant and pressing challenges for Ofwat.”

The government has launched a new consultation on the governance, structure and operation of the National Infrastructure Commission.

 

Ofwat has launched a new consultation on changes to Instruments of Appointment and Water Supply Licences for the opening of the non-household retail market in  2017.

Water sector regulator Ofwat is looking to further strengthen its Senior Leadership team via the creation of four new Senior Director roles.   

Ofwat has said that the scale of potential cost savings available from greater interconnection is around £914 million (2012-13 prices) compared to the cost of the schemes proposed in water companies’ 2014 Water Resource Management Plans.

The UK Regulators Network  has today published its annual reporting guidance document for infrastructure operators.

Cathryn Ross, Chief Executive of Ofwat, has reassured water company Chief Executives that Ofwat’s work on assessing the benefits of extending competition to domestic customers in England will not compromise the timescales for non-household retail market opening and its work on the policy framework and methodology for PR19.

New proposals by Ofwat look set to usher even more competition into the UK water sector, including plans to open up the market for increased water trading, energy generation from sewage sludge and more direct procurement of large-scale infrastructure investments like the Thames Tideway Tunnel.

The Competition and Markets Authority has used new power to highlight competition issues on the Energy Bill - the first use by the CMA of its power to make and publish written recommendations to ministers on the impact of proposals for Westminster legislation on competition.

Ofwat has launched a new consultation on protecting customers in the non-household retail market through the introduction of a new Customer Protection Code of Practice.

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