Source · Select Committees · Public Accounts Committee
Recommendation 29
29
Accepted
Urgent water sector issues persist despite new Act; key powers and accountability measures face delays.
Conclusion
Defra acknowledged that some issues were too pressing to wait until it implemented the Commission’s recommendations. Defra told us that it took some of the actions needed in the Water (Special Measures) Act. However, EA told us that its power to take action when storm overflows are used on days without rain will not come into force until 1 January 2026.97 Ofwat also told us it was consulting on the approach for the fit and proper test over next two to three months. Defra told us that the Act also establishes new customer panels and other measures to make companies more directly accountable to customers, but did not tell us when they would be in operation.98
Government Response Summary
The government agrees that some issues are too pressing to wait, and cites the Water Act 2024 and Ofwat's consultation on the fit and proper person test as actions already taken.
Government Response
Accepted
HM Government
Accepted
The Government agrees that some issues are too pressing to wait for the Water Reform Committee’s recommendations to be implemented. The Water Act 2024 includes provisions to strengthen Ofwat’s enforcement powers, require water companies to produce and implement leakage reduction plans, and enable the Environment Agency to take action against water companies that use storm overflows on days without rain. Ofwat is also consulting on changes to the fit and proper person test for water company directors.