Select committee: Industry and Regulators Committee
Recommendation 47
1st Report - The affluent and the effluent: cleaning up failures in water and sewage regulation
Published 22 Mar 2023
Paragraph 289
Industry and Regulators Committee The work of Ofwat All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
We support Ofwat’s increased interest in executive pay, including its expectation that companies set out their proposed policies for performance-related executive pay during the next Price Review period. These proposals should ensure performance-related pay is much more closely linked to performance, particularly in relation to the environment. Ofwat should set out further provisions to ban bonuses at companies who have been found to have caused serious pollution incidents as part of the conditions of water company licences.
From: Industry and Regulators Committee, 1st Report - The affluent and the effluent: cleaning up failures in water and sewage regulation, paragraph 289, 22 March 2023
Government response
The government responded to the whole report on 5 June 2023 (deadline 22 May 2023).
Summary written by Accountability Index from the government's response. It is not the government's own words.The Government points to its Plan for Water and Environmental Improvement Plan as addressing many of the Committee's recommendations, and responds to each recommendation in turn, with some positions stated and others referred to those plans.
- On the Strategic Policy Statement, the Government "does not intend to update the SPS", citing Ofwat's ongoing 2024 Price Review process (PR24).
- On a single social tariff, the response states "There are no plans to introduce a single social tariff".
- On wet wipes, the Government says it "will change the law to ban the sale of wet wipes containing plastic, subject to public consultation".
- On storm overflows, the Government says it has committed to review the Discharge Reduction Plan in 2027, so that companies "remain as ambitious as possible, while balancing the impact on bills".