The economic regulator of the water and sewerage industry in England and Wales

Ofwat (The Water Services Regulation Authority) is the economic regulator of the water and sewerage sectors in England and Wales. We are here to make sure that the companies provide household and business consumers with a good quality service and value for money. Find out more about us, and about the water and sewerage sectors.

Hot topics

Future price limits - statement of principles

After we last set price limits in November 2009, we started a wide-ranging and in-depth review (‘future regulation’) of how we regulate. We did this in order to make sure the way that we regulate is fit for purpose and helps the water and sewerage sectors in England and Wales meet the challenges they face. Our work has included reviewing the way in which we set price limits for the sectors, through our future price limits project.

In ‘Future price limits – a statement of principles’ we set out the high-level principles that we intend to use to guide us in how we set price limits in the future. This was shaped by feedback we received to – and since – we published ‘Future price limits – a consultation on the framework’ in November 2011.

Delivering proportionate and targeted regulation 

Protecting customers is central to our role as the economic regulator of the water and sewerage sectors – it is one of our primary statutory duties. We face a number of major new challenges that could affect the services we all rely on every day. To continue protecting customers in the face of these challenges we need to ensure we have the capability to be agile in responding to emerging or changing risks, and (where necessary) take swift and decisive action. 

That is why we are adopting a risk-based approach to regulation – a significant change in how we identify and deal with risk. Find out more about our new approach. 

Drought

Following two dry winters, parts of England are in drought. The Environment Agency have information about drought and water restrictions (including hosepipe bans). Find out whether you might be affected.

Water companies must provide secure supplies of water and balance supply and demand. A company may occasionally need to restrict non-essential water supplies, such as in exceptionally dry weather. Ofwat makes sure that companies invest at a price customers are willing to pay, so that companies do not need to impose restrictions more often than customers find acceptable. We set targets for companies to reduce leakage and to help customers reduce water use, balancing costs to customers and the benefits to the environment.

Drought may become more frequent owing to climate change and more homes using more water. We can all help reduce the risk by not wasting water - see our water saving tips below. Our focus report ‘Valuing every drop?’ suggests how to use water more efficiently.

Your water supply and drought | Water saving tips | Long-term planning | Ofwat's role in water resources