Ofwat
The Water Services Regulation Authority, or Ofwat, was a non-ministerial government department and body responsible for the economic regulation of the privatised water and sewerage industry in England and Wales. Ofwat's main statutory duties included protecting the interests of consumers, securing the long-term resilience of Water supply and sanitation in [England and Wales|water supply and wastewater systems], and ensuring that companies carried out their functions and were able to finance them.
Ofwat primarily set limits on the prices charged for water and sewerage services, taking into account proposed capital investment schemes and expected operational efficiency gains. The most recent review was carried out in December 2024.
The Water Act 2014 extended retail competition to all non-household customers of English water companies from April 2017 and provided for possible future competition in wholesale markets. Ofwat's role included regulating such water and wastewater markets and promoting effective competition wherever appropriate.
Ofwat consisted of a board, plus an office of staff which carries out work delegated to them by the board. Ofwat is headquartered in the Centre City Tower in Birmingham.
The Environment Agency is responsible for environmental regulation, and the Drinking Water Inspectorate for regulating drinking water quality. Water in Northern Ireland is regulated by the Northern Ireland Authority for Utility Regulation, and the supply and treatment is carried out by the government-owned Northern Ireland Water. There is no separate charge for water for residents or companies in Northern Ireland. Instead, water is paid for by the rates system. The water industry regulator in Scotland is the Water Industry Commission for Scotland.
History
Ofwat was set up in 1988, at the same time as 10 water authorities in England and Wales were privatised by flotation on the stock market. Its duties and powers are defined by the Water Industry Act 1991. The resulting companies are known as "water and sewerage companies"; this distinguishes them from around a dozen smaller companies which only provide water services, which were already in private hands in 1989. The water-only companies provide water to around 25% of the population in England and Wales.Before 1 April 2006, all regulatory powers rested with the Director General of Water Services. The staff who supported the role of the Director General were collectively known as the "Office of Water Services", which was abbreviated to "Ofwat". Ian Byatt was the Director General between 1989 and 2000; Philip Fletcher was Director General until 2006 and chairman until 2012. On 1 April 2006, the Director General was replaced by the Water Services Regulation Authority. The name "Office of Water Services" is no longer used, as it had no legal basis.