Government to assess water infrastructure needs in ‘smarter regulation’ push

An assessment of water infrastructure investment requirements, a framework to guide Ofwat’s application of the Growth Duty and a new register for vulnerable utility customer data sharing all featured in a Department for Business and Trade (DBT) White Paper on smarter regulation, published last week.

Smarter regulation: delivering a regulatory environment for innovation, investment and growth included among the following commitments relevant to water: 

• A holistic assessment of infrastructure investment needs in energy networks, water and telecoms sectors. This should enhance monitoring and regulatory accountability, as well as supporting decision-making approaches. 

• A new Growth Duty Performance Framework to enhance transparency and accountability, by asking regulators to provide evidence on how they are supporting economic growth. This follows Ofwat, Ofgem and Ofcom being given a new Growth Duty earlier this year. DBT said the Growth Duty should be considered alongside, rather than take precedence over, regulators’ other statutory duties. For example: “The Growth Duty will not prevent Ofwat from taking enforcement against illegal activity from water companies. The volume of sewage being discharged into our waters is utterly unacceptable." 

• A new Share Once Support Register which will mean vulnerable customers only need to register with energy, telecoms and water companies once, making sure they don’t drop off the register and are safe in the knowledge that their access to utilities is protected.

• A new Regulators Council to improve the strategic dialogue between regulators and government, and monitor the effectiveness of the policy and strategic guidance issued.

Business secretary Kemi Badenoch said: “This is about establishing a high bar for regulation and avoiding unnecessary costs for UK businesses but it is fully consistent with acting where that bar is met and where we need to protect consumers, businesses and the environment – for example the government’s steps to increase regulatory scrutiny in the water sector."

The White Paper was published alongside another document, Smarter regulation: one year on – May 2024, which detailed government progress so far on reform and set out a roadmap for further action. Badenoch said: “So far, it is estimated that our reforms will reduce the burden on business by up to £1bn or 50 million hours per year by cutting unnecessary bureaucracy and form filling. The overall benefits to society are estimated at £6.3bn.”