Source · Select Committees · Public Accounts Committee
Recommendation 19
19
Acknowledged
Regulators lack power to impose enforcement undertakings on water companies
Conclusion
Both the EA and Ofwat told us they would like to encourage companies into ‘enforcement undertakings’, whereby companies are obliged to take action to fix an issue, or return money to bill-payers. The EA told us that at present, only 12% of its cases get an offer of undertakings. Both Ofwat and EA told us they do not have the legal power to impose undertakings, although the EA told us it is hoping to use civil penalties as a lever to get more companies to volunteer.55
Government Response Summary
The government encourages the EA and Ofwat to use enforcement undertakings where appropriate and is working to ensure they have the necessary powers.
Government Response
Acknowledged
HM Government
Acknowledged
The Government encourages the EA and Ofwat to use enforcement undertakings where appropriate. Enforcement undertakings can be a valuable tool for ensuring that companies take action to fix an issue or return money to bill-payers. The Government is working to ensure that the EA and Ofwat have the powers they need to use enforcement undertakings effectively.