Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment he has made of the adequacy of Ofwat in protecting consumers from bill increases where a water company becomes insolvent.

Ofwat’s price review process sets limits on what water companies can charge customers, ensuring bills reflect only efficient costs required to deliver services and meet statutory obligations. It does not allow companies to pass on costs incurred outside normal business operations, including those related to financial distress.

In the event of insolvency, Ofwat can initiate a Special Administration Regime to maintain service continuity and protect consumers. Price controls remain in place regardless of ownership changes, safeguarding customers from disproportionate bill increases.