New Government Guidance will require water industry regulator Ofwat to regularly review and report on the issue of cyclical investment in the water sector and whether its regulatory framework is having an impact on the profile of investment in the water and sewerage sector.

Yorkshire Water CEO Liz Barber has welcomed the Government’s strategic policy statement (SPS) for Ofwat, but has called for it to go further to enable the regulator and water companies to tackle a range of challenges with the scale and urgency required.

UK water industry regulator Ofwat is considering whether there is a possible link between a rise in the number of pollution incidents that the water companies reported during 2011-12 and how well the companies are managing, maintaining and operating their underground networks.

A newly-published paper has provided further insight into water industry regulator Ofwat’s thinking on the proposed changes needed in the UK water sector – and whether the Draft Water Bill delivers. It also flags up Thames Water’s Tideway Tunnel as the perfect example of where competition for the market could be put to the test.

Ofwat Chief Executive Regina Finn has denied that the industry regulator is acting beyond its existing powers with regard to modifying licences of water companies.

The Environment, Food and Rural Affairs (EFRA) Committee has held its first oral evidence session with relation to the Draft Water Bill, with issues such as upstream reform, resilience and the merger regime being discussed.