Member

Further, Ofwat’s independence is an important part of ensuring that there is trust in our regulatory regime. We consider it important that Ofwat has the freedom to use its enforcement powers as it sees fit and in line with its published enforcement policy. The noble Earl, Lord Russell, asked about the implementation of legislation and how we know that Ofwat will take action if a company breaks the rules. Ofwat will be able to use its direction-giving power and wider enforcement framework to hold companies to account where it has reason to believe that an executive does not meet the required standards and that the company is consequently in breach of the rules. We believe it is important that Ofwat has the freedom to use its enforcement powers as it sees fit, in line with the published enforcement policy. I hope that reassures noble Lords on their amendments.