Recommendation 25

Defra has overall responsibility for setting the policy and regulatory framework for water in England.82 Defra told us there is “too piecemeal a picture” of regulation currently, with overlaps and gaps in responsibilities.83 71 Qq 34, 110 72 C&AG’s Report, para 3.32 73 Q 3 74 C&AG’s Report, para 3.6 75 Qq 100, 110 76 C&AG’s Report, paras 3.23, 3.35 77 Qq 10-11 78 Q 109 79 Q 32 80 C&AG’s Report, para 3.28 81 Q 109 82 C&AG’s Report, para 2.2 83 Q 84 17 We asked Defra and the regulators about two key areas of regulation: the net zero impact of the sector, and the security of the network. On net zero, the EA told us it does not comprehensively assess the impact of the actions it asks water companies to take on net zero, and that it was focused on delivering specific outcomes such as phosphorus reduction, because of the way the environmental law is focused. The EA told us emissions from wastewater represent 1.2% of the UK’s emissions, and that they are doing a lot of work towards meeting the industrial emissions directive.84 Meanwhile, Ofwat must have regard for the government’s net zero target through its consumer, resilience and sustainable development duties. On network security, including cyber security, DWI is responsible for checking that water companies have taken appropriate action in the supply of drinking water to be protected from attacks.85 Defra acknowledged that the framework for wastewater is not as robust.86