Recommendation 10

Water companies have a large and extensive network of assets that they are responsible for maintaining, including reservoirs, treatment works, pumping stations, and water supply and sewer pipes. Ofwat published a targeted review of asset health in 2017, followed up by work on asset management maturity in 2021. In December 2024, it published a Roadmap for enhancing asset health understanding in the water sector. At the current rate of replacement, it will take water companies 700 years to replace the entire network of water mains. This rate is below the level at which Ofwat set expectations for the last five years, and what it considers the sustainable rate of 125 to 160 years.22 The EA told us that failing assets are causing severe environmental pollution, and they should therefore take much more urgent action to remediate this than it has thus far.23