We understand well that the challenges faced by the water sector of population growth, climate change, tightening environmental standards and changing customer expectations are likely to require further significant investment in future.
While to date the water sector has retained the support of bill payers, this has been in part the result of a willingness to adapt and improve the regulatory framework which has set prices and service levels since privatisation.
As we look to meet the challenges ahead, we need to consider making further changes to the framework that will enable us to deliver better outcomes while maintaining services that are affordable for all.
Our contribution to the debate
Placing customers at the heart of price reviews is essential to achieving a sustainable outcome.
We have commissioned a report from Frontier Economics to investigate the potential impact of more direct negotiations between customers and companies.
The success of the water industry over the last 25 years also presents an opportunity for policy makers seeking to reduce public expenditure, increase resilience and improve the environment. We have identified how the water sector could help deliver this and the reforms that this would require.