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NAO says regulators have failed to deliver a trusted and resilient water sector

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Friday, 25 April, 2025
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water hose

On Friday, an important report was released on our water companies by the National Audit Office (NAO), the body tasked to review value for money and performance quality in the public sector.

Richard Fuller MP said:

In assessing the difficulties in the water sector, the report finds a decline in public confidence and points the finger at the regulators stating:

“Defra and the water sector’s regulators have not encouraged water companies to spend what they need to deliver the performance expected. The sector now faces significant environmental and supply challenges. To meet these challenges, it will need to attract investment and spend at a rate not seen before.”

“The regulatory framework has contributed to worsening investor perception of the sector. Both consumers and investors must have trust that money is being well spent, and that returns are predictable and appropriate.”

The Report then lists a series of very sensible recommendations for improvement. In addition, I would reiterate that Parliament should create a much more effective system of oversight of the major economic regulators (OFWAT, OFGEM, FCA etc) and score them annually on their performance.

You can read the NAO's report at this link.

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ConservativesPromoted by Katherine Arnold on behalf of Richard Fuller both at NBCA, Biggleswade Conservative Club, St Andrews Street, Biggleswade SG18 8BA
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