Source · Select Committees · Environment, Food and Rural Affairs Committee
Recommendation 2
2
Given the longstanding and compounding issues that some water companies are facing in the sector,...
Conclusion
Given the longstanding and compounding issues that some water companies are facing in the sector, a future supervisory water regulator must have the powers to intervene sooner when companies are beginning to demonstrate a lack of financial resilience or persistent performance issues that are not improving rapidly enough. The suggestion of an improved turnaround regime that can be implemented quickly and resolve fundamental funding concerns is welcome. It must not, however, exempt companies from environmental and customer protections. Instead, the new regulatory system must intervene far sooner to avoid companies beginning a vicious cycle of penalties and chronic underperformance. (Recommendation, Paragraph 17) 20 Insolvency, Special Administration and the future of Thames Water