Ofwat flexes enforcement muscle with £11m funding boost

HM Treasury has approved an £11.3m funding boost for Ofwat.

Water companies will have to pay higher licence fees to cover the cost. Ofwat said the new funding will be focused on “building Ofwat capability to help drive transformation in company performance, enabling long term infrastructure delivery, making progress towards PR24, as well and delivering a significant boost [nearly trebling] to the regulator's enforcement capacity”.

Ofwat chief executive David Black commented: “This announcement will send out a strong signal; that the time is now for water companies to deliver for customers and the environment. Should they fail in those commitments, Ofwat has never been better resourced or more determined to take robust, effective action.”

Exchequer secretary to the Treasury, Gareth Davies, said: “With these additional resources, Ofwat will be well-equipped to take decisive action against underperformance and foster a culture of responsibility and excellence within the water industry.”