Ofwat pledges to change ahead of the creation of a single regulator

(by Karma Loveday)

Ofwat’s new leaders have pledged to take a different and more collaborative approach to regulation as work to create a new integrated regulator is taken forward.

In a blog, Chris Walters, interim chief executive, and Helen Campbell, interim executive director of delivery, explained: "Ofwat did its best under the previous regulatory structure, but we acknowledge that the previous regulatory approach, including Ofwat’s, did not act fast enough to prevent the failures that have damaged public trust in the water sector.”

Given the twin challenges of a need to transform wastewater treatment and to invest at an unprecedented rate to secure water supplies: “While our statutory duties remain the same until the formation of the new regulatory body, our approach has to be different.” They said: “Greater collaboration will make us more effective as a regulator during this transition period and helps pave the way for the new body.”

The blog also set out the focus areas of the two leaders during the transition phase. Walters will lead on collaborating with other stakeholders to create the new regulator, support RAPID’s work on major project development, and oversee enforcement activity. He said: “We will continue to use our enforcement powers when companies step out of line, but our approach over the transition period will be as collaborative as possible. Ofwat will continue to direct redress packages so they address the harm water companies’ actions have caused.”

Campbell will focus on: ensuring water companies spend the £104bn set out in PR24 to deliver the performance and outcomes expected; holding companies to account for efficient delivery of their major project programmes; and ensuring companies are organisationally, operationally and financially resilient. She commented: “This is not new work for Ofwat. But we will be changing how we approach these challenges, stepping up the pace and being more proactive and collaborative, smarter at prioritisation, and more forward-looking.”