Ofwat has today set out its agenda for rebuilding public trust in the water sector, as it continues to push water companies to act in the interests of their customers.
Ofwat has been leading a concerted drive to bring change to the water sector and to tackle some of the practices that have been a cause for concern with customers.
As the next step in those efforts, Ofwat’s chair, Jonson Cox, has written to the Secretary of State for Environment, Food and Rural Affairs, setting out the regulator’s agenda to improve corporate behaviours, including:
- Reforming company licences to make it even clearer that companies must put customers at the heart of everything they do;
- Looking to companies to share with customers any financial benefits they make from taking on additional gearing;
- Setting tighter standards to make sure companies are financially resilient in the long term;
- Stepping up demands on transparency around dividends and profits, including a clear expectation that companies meet their obligations to customers before making dividend payments; and,
- Addressing concerns around executive pay, including an expectation that water company boards explain executive bonuses by reference to exceptional delivery for customers.
Read the full announcement at PN 16/18 Ofwat has today set out its agenda for rebuilding public trust in the water sector