Recommendation 6

No-one is taking responsibility for ensuring that the regulatory system works, as is evident by its failings. Defra has overall responsibility for the regulatory framework. However, it is not planning an improvement of the system it describes as “piecemeal”. There are gaps in key areas such as oversight of the security (including cyber-security) of the wastewater network. The EA is not monitoring the net zero impact of water companies’ work, despite the fact that the wastewater network is responsible for 1.2% of all UK emissions. There is no single guiding mind balancing the need for improvements with the impact on bills and in the past the wrong approach has been taken. Regulators and the sector now face a 6 huge challenge to make environmental improvements and meet water supply needs. Long-term resilience in the face of climate change has also been deprioritised. recommendation Defra should use this Committee’s and the NAO’s findings, alongside any recommendations from the Water Commission once it is published, to clarify and fill gaps in regulator responsibilities and be explicit on when and how trade-offs will be considered.