Accountability in the water industry and proposals for the reform of Ofwat

That this House notes with concern the systemic failings of the water industry and its regulators, which have allowed water companies to break the law while forcing customers to pay twice for essential services; further notes that Ofwat’s PR24 determination allocated enhanced funding to United Utilities for the Windermere Schemes without ensuring that this money would be used to improve sewerage services, rather than belatedly bring sites into compliance; recognises that this failure reflects wider national issues in the water industry, where investment has been inadequate and permit breaches persist; condemns Ofwat for relying on modelled, rather than real-world, data, allowing water companies to mark their own homework and evade accountability; further notes that Ofwat previously allowed financial extraction by private equity firms, resulting in higher bills and environmental degradation; and calls on the Government to reform Ofwat so that regulatory decisions are based on actual data, introduce a robust clawback mechanism to prevent unjustified charges, and ensure that water companies, not customers, bear the financial burden of bringing sites into legal compliance