UK Water Regulator Gets Trapped in a Crisis of its Own Making

After years of lax oversight, Ofwat needs shareholders to invest more. But at the same time bills will also rise.

Iain Coucher, Ofwat chairman, answers questions in front of the Environment, Food and Rural Affairs Select Committee on July 12.
Source: House of Commons/Source: UK Parliament

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By Philip Aldrick, Priscila Azevedo Rocha, and Lars Mucklejohn

July 14, 2023 at 4:01 AM UTC

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Ofwat faces a difficult balancing act. The UK regulator must shore up the water companies — requiring billions from shareholders — without killing off investment in the water sector. It is a challenge that some believe will be beyond the organization whose chairman on Wednesday sought to reassure MPs by telling them it would take a “more muscular approach” to dealing with the turmoil facing the heavily indebted industry.

“We have the power to enforce compliance, to address any aspect of under-performance through either fines, withholding dividend payments if we think they are in breach of their obligations,” Iain Coucher told a hearing of the House of Commons Environment, Food and Rural Affairs Select Committee. “We didn't have that power before — we do now.”