Source · Select Committees · Environmental Audit Committee
Recommendation 44
44
Paragraph: 233
The Secretary of State has the opportunity to set strategic direction for Ofwat.
Conclusion
The Secretary of State has the opportunity to set strategic direction for Ofwat. Now is the time for the Government to act in encouraging Ofwat to increase materially the proportion of each company’s capital investment devoted to improving water quality.
Paragraph Reference:
233
Government Response
Acknowledged
HM Government
Acknowledged
. decision making. Ofwat will strive to reflect a natural capital approach in their decision making for the next Price Review (PR24). Water companies will need to provide high quality data to make this approach work. Most environmental improvements for PR24 will be determined by the Environment Agency as part of the Water Industry National Environment Programme (WINEP). As part of the WINEP taskforce, alongside Defra and the Environment Agency, Ofwat has introduced a natural capital approach to assess the environmental implications of WINEP proposals. done in an informed, planned and consistent way. In turn, Ofwat need to be confident that the data underlying any metrics is robust enough to support the right outcomes at a price review. In addition to the changes introduced to the WINEP, Ofwat is looking to introduce other ways of measuring and rewarding natural capital improvements in PR24 for example through a biodiversity performance commitment. Ofwat has agreed to continue working with the Environment Agency and Defra on future improvements to the WINEP, including improvements to ensure that water company decisions become further integrated into natural capital planning.