Image description: Wide shot of the houses of Parliament. Image by Dominika Gregušová / Pexels.

The House of Commons Public Accounts Committee (PAC) heard evidence in person earlier this week from senior executives at Ofwat, Water UK, CCW, DEFRA and the Environment Agency as part of its current inquiry into water sector regulation.

In April 2025 the National Audit Office (NAO) published a highly critical report on regulation in the water sector saying that Defra and water regulators have failed to drive necessary investment for the sector, which now faces significant environmental, supply and infrastructure challenges. Sir Jon Cunliffe also released the Independent Water Commissions interim report last week, identifying five key areas where fundamental change was needed.

Based on the NAO report, the PAC heard from experts and senior officials across two panels on subjects including:

• gaps and inconsistencies in the regulatory framework;
• the sector’s stagnating performance in pollution incidents, mains bursts and supply interruptions;
• regulators’ ability to prevent companies paying excessive dividends; and
• how to ensure that, in the event a water company goes under, taxpayers and customers would not have to foot the bill.

You can read the oral evidence here, or watch the committee hearing on Parliament TV.