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, type = , nativename = , nativename_a = , nativename_r = , logo = Ofwat logo.svg , logo_width = 150px , logo_caption = , seal = , seal_width = , seal_caption = , picture = , picture_width = , picture_caption = , formed = , preceding1 = Office of Water Services , dissolved = , superseding = , jurisdiction = England and Wales , headquarters = Centre City Tower, 7 Hill Street, Birmingham, B5 4UA , region_code = GB , coordinates = , employees = 226 , budget = £19.1 million (2011-2012) , minister1_name = , minister1_pfo = , chief1_name = David Black , chief1_position = Chief Executive , chief2_name = , chief2_position = , chief3_name = , chief3_position = , chief4_name = , chief4_position = , chief5_name = , chief5_position = , agency_type =
Non-ministerial government department Non-ministerial government departments (NMGDs) are a type of department of the United Kingdom government that deal with matters for which direct political oversight has been judged unnecessary or inappropriate. They are headed by senior civil se ...
, chief6_name = , chief6_position = , chief7_name = , chief7_position = , chief8_name = , chief8_position = , chief9_name = , chief9_position = , parent_department =
Department for the Environment, Food and Rural Affairs The Department for Environment, Food and Rural Affairs (Defra) is a department of His Majesty's Government responsible for environmental protection, food production and standards, agriculture, fisheries and rural communities in the United Ki ...
, parent_agency = , child1_agency = , keydocument1 = , website = , footnotes = , map = , map_width = , map_caption = The Water Services Regulation Authority, or Ofwat, is the body responsible for economic regulation of the privatised
water Water (chemical formula ) is an inorganic, transparent, tasteless, odorless, and nearly colorless chemical substance, which is the main constituent of Earth's hydrosphere and the fluids of all known living organisms (in which it acts as a ...
and sewerage industry in
England England is a country that is part of the United Kingdom. It shares land borders with Wales to its west and Scotland to its north. The Irish Sea lies northwest and the Celtic Sea to the southwest. It is separated from continental Europe b ...
and
Wales Wales ( cy, Cymru ) is a Countries of the United Kingdom, country that is part of the United Kingdom. It is bordered by England to the Wales–England border, east, the Irish Sea to the north and west, the Celtic Sea to the south west and the ...
. Ofwat's main statutory duties include protecting the interests of consumers, securing the long-term resilience of water supply and wastewater systems, and ensuring that companies carry out their functions and are able to finance them. Ofwat primarily sets limits on the prices charged for water and sewerage services, taking into account proposed capital investment schemes (such as building new
wastewater treatment Wastewater treatment is a process used to remove contaminants from wastewater and convert it into an effluent that can be returned to the water cycle. Once returned to the water cycle, the effluent creates an acceptable impact on the environme ...
works) and expected operational efficiency gains. The most recent review was carried out in 2014; reviews are carried out every five years, with the next due to take place in December 2019. 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 Wholesaling or distributing is the sale of goods or merchandise to retailers; to industrial, commercial, institutional or other professional business users; or to other wholesalers (wholesale businesses) and related subordinated services. In ...
markets. Ofwat's role includes regulating such water and wastewater markets and promoting effective competition wherever appropriate. Ofwat consists of a board, plus an office of staff which carries out work delegated to them by the board. The
Environment Agency The Environment Agency (EA) is a non-departmental public body, established in 1996 and sponsored by the United Kingdom government's Department for Environment, Food and Rural Affairs, with responsibilities relating to the protection and enha ...
is responsible for environmental regulation, and the
Drinking Water Inspectorate The Drinking Water Inspectorate (DWI) is a section of Department for Environment, Food and Rural Affairs (DEFRA) set up to regulate the public water supply companies in England and Wales. Based in Whitehall, it produces an annual report showing th ...
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 Northern Ireland Water Limited ( ga, Uisce Thuaisceart Éireann; Ulster-Scots: ''Norlin Airlan Wattèr'') is a water company in Northern Ireland. Formerly an executive agency within Northern Ireland Executive, it became a government-owned co ...
. There is no separate charge for water for residents or companies in Northern Ireland. Instead, water is paid for by the
rates Rate or rates may refer to: Finance * Rates (tax), a type of taxation system in the United Kingdom used to fund local government * Exchange rate, rate at which one currency will be exchanged for another Mathematics and science * Rate (mathema ...
system. The
water industry The water industry provides drinking water and wastewater services (including sewage treatment) to residential, commercial, and industrial sectors of the economy. Typically public utilities operate water supply networks. The water industry doe ...
regulator in
Scotland Scotland (, ) is a country that is part of the United Kingdom. Covering the northern third of the island of Great Britain, mainland Scotland has a border with England to the southeast and is otherwise surrounded by the Atlantic Ocean to the ...
is the
Water Industry Commission for Scotland The Water Industry Commission for Scotland (WICS) is the economic regulator of the water and sewerage industry in Scotland. Established in 2005, it is an executive non-departmental public body of the Scottish Government with statutory responsibi ...
.


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 Water Industry Act 1991 (c. 56) is an Act of the United Kingdom Parliament consolidating previous enactments relating to the water supply and the provision of wastewater services in England and Wales. It further implemented recommendations of ...
. 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 (having remained in private ownership since their creation in the 19th century). 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 Philip John Fletcher, (2 May 1946 – 10 February 2022) was a British public servant. Career From 1968 to 1995, he was a career civil servant, mainly working in the Department of the Environment and rising to the rank of deputy secretary. He se ...
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.


Key people

The current chairman is Jonson Cox, who took up his position in November 2012. The current interim chief executive (effective April 2021) is David Black, replacing Rachel Fletcher who was chief executive from January 2018.
Iain Coucher Iain Michael Coucher (born 22 August 1961) is the serving Chief Executive of the Atomic Weapons Establishment. He has worked as a consultant in the railway industry and held a number of management posts, most notably serving as the Chief Execu ...
will succeed Cox as chairman in July 2022.


Price reviews

Every five years, Ofwat set limits on the prices which water companies in England and Wales can charge to their customers; this process is known as a price review or periodic review. Ofwat has carried out six price reviews so far – in 1994 (PR94), 1999 (PR99), 2004 (PR04), 2009 (PR09), 2014 (PR14) and 2019 (PR19). The most recent, PR19, set price limits for 2020–2025. Ofwat sets a so-called "K factor" in companies' licences which determine the average value of price rises above the rate of inflation ( RPI) for the next five year
asset management plan period An asset management plan (AMP) period is a five-year time period used in the English and Welsh water industry. It is used by the Water Services Regulation Authority to set allowable price increases for the privately owned water companies and for th ...
.


See also

*
List of United Kingdom water companies Water supply and sanitation in the United Kingdom is provided by a number of water and sewerage companies. Twelve companies and organisations provide drainage and sewerage services, each over a wide area, to the whole United Kingdom; and supply w ...
*
Water supply and sanitation in England and Wales Public water supply and sanitation in England and Wales has been characterised by universal access and generally good service quality. Salient features of the sector in the United Kingdom compared to other developed countries is the full priva ...


References


External links

* {{Authority control Water supply and sanitation in England and Wales Water in Wales Regulators of the United Kingdom 2006 establishments in the United Kingdom Organizations established in 2006