The Environment, Food and Rural Affairs Committee (EFRA) has set the stage for a high-stakes interrogation of the UK’s water sector, announcing a rigorous schedule of evidence sessions with the CEOs and CFOs of eight major water companies. This inquiry, launched in December, comes at a critical juncture, as Ofwat’s recent price review revealed a staggering 36% average increase in customer bills over the next five years. The upcoming sessions, spread across February and March, will delve into the financial, environmental, and service delivery performance of these companies, with a keen eye on consumer satisfaction.
The first round of sessions on 25 February will see South West Water and Yorkshire Water in the hot seat, followed by United Utilities and Severn Trent Water on 26 February. The inquiry will resume on 11 March with Northumbrian Water and Dŵr Cymru Welsh Water, concluding on 12 March with Wessex Water and Anglian Water. Each session promises to be a thorough examination of the companies’ individual performances, with MPs poised to challenge executives on their track records and future plans.
Chair of the EFRA Committee, Alistair Carmichael MP, has made it clear that the inquiry is not just about numbers; it’s about accountability. “The water industry has attracted investment from financial institutions looking for low risk and high reward returns, without sufficiently prioritising the delivery of services to the public,” Carmichael asserted. This statement underscores a growing concern that the sector has become more focused on shareholder value than on public service.
The inquiry’s timing is significant, coming on the heels of high-profile incidents that have shaken public trust. Water outages, sewage pollution, and contamination outbreaks have left consumers questioning the reliability and safety of their water supplies. These issues are not just operational failures; they are symptoms of a deeper malaise within the sector. The EFRA’s inquiry aims to expose these underlying problems and hold companies accountable for their performance.
The first evidence session in January set the tone, with MPs grilling representatives from The Consumer Council for Water, Water UK, and Citizens Advice, before turning their attention to Southern Water. The scrutiny was intense, reflecting the public’s growing frustration with the sector. The upcoming sessions will likely follow suit, with MPs demanding concrete answers and action plans from the water companies.
This inquiry could be a turning point for the water sector. It has the potential to reshape the industry’s priorities, pushing companies to focus more on service delivery and environmental stewardship. The scrutiny could also drive innovation, as companies seek to improve their performance and regain public trust. Moreover, the inquiry could influence Ofwat’s regulatory approach, encouraging a more stringent oversight of the sector.
However, the real impact will depend on the follow-through. The EFRA’s inquiry must translate into tangible changes, with water companies committing to meaningful improvements in their operations and governance. The public, after all, deserves a water sector that prioritises their needs and safeguards their environment. The upcoming sessions are a crucial step in this direction, but they are just the beginning of a much-needed transformation.
