Member

Companies already report thoroughly on an ongoing basis to Ofwat. Ofwat carries out detailed reviews of financial and other relevant information published by companies in their annual performance reports, their statutory accounts, any interim accounts, investor reports and other relevant sources. Where it is clear that a company needs to strengthen its financial resilience, or if any potential risks are identified, Ofwat uses its tools to drive change and improve standards, and takes action where a company has not acted in accordance with its licence. For example, if a company’s credit ratings are downgraded to the lowest investment grade under its licence conditions, it is unable to pay any dividends without Ofwat’s approval.