Water UK calls on Defra to give concrete direction to Ofwat on government goals

The 2020s could end up a “wasted decade” in terms of equipping the water sector to rise to the challenges before it, if the Government doesn’t provide clearer direction to Ofwat in its final Strategic Policy Statement (SPS).

That was the message from Water UK in its response to the draft SPS, published last week. The trade body warned the draft is a “missed opportunity” to ensure that the water industry can make significant progress before the end of the decade in addressing the many long-term challenges it faces, such as responding to the climate crisis, a growing population and improving river health.

Water UK called for clearer direction from the Government for Ofwat to ensure that investment decisions put the industry on the right track to meet Government targets – or risk either missing the goals altogether or costing customers more to reach them. The response called the lack of concrete direction in the SPS to meet these targets “incomprehensible” and in sharp contrast with Government’s stated intent and rhetoric.

Water UK is also called for the Government to show greater ambition in transforming how investments are made, by setting a ‘natural by default’ presumption that catchment or nature-based solutions are used unless alternative approaches provide better long-term value to customers and environment or are legally required.

It added there needs to be a greater role for Parliament in ensuring accountability and transparency in Ofwat’s decision-making, arguing Ofwat should be required to explain to Parliament how the decisions it takes put the industry on the right track to meet Government targets.