Summary
The Water Services Regulation Authority (Ofwat) is the
economic regulator of water services in England and Wales, with responsibility
for setting price limits that allow the 22 main water companies to secure
sustainable supplies at the lowest cost to the consumer.
This Report
from the House of Commons Committee of Public Accounts
‘Ofwat:
Meeting the demand for water’ (HC 286) finds that Ofwat needs to make
changes to its regulatory system, in particular on water efficiency, data
quality, and enforcement, given the increasing challenges to water supplies due
to low rainfall and predictions of housing growth.
The Committee
suggests that Ofwat does not understand how consumers use water and has not
collected enough robust evidence on which water efficiency projects are most
effective in helping consumers to use less water. Despite some progress, Ofwat
still depends on unreliable data with regard to both supply and demand, and
also needs much better data on per capita consumption.
It has had some
success in encouraging sustainable investment by companies, but needs to be
more active in using sanctions against companies that underperform against
their commitments to meet all reasonable demands for water, while limiting
environmental impacts.
The Committee’s inquiry follows on from a
National
Audit Office Report (HCP 150) published in January 2007.
Found
this story interesting?
Spread the news by clicking below to add it
to your bookmarking service:
How
does it affect me?
The Report recommends that Ofwat should press
companies to encourage more consumers to use meters by, for example, promoting
the benefits of metering to consumers as well as routinely installing meters
when there is a change of building occupancy. This will affect all water
consumers.
Find out more about the work of the
House
of Commons Committee of Public Accounts.
See more on
Ofwat.