Tuesday 22 November 2016
Ofwat has today () published its first full report focusing on the financial resilience of the water sector in England and Wales.
The monitoring financial resilience report sets out the regulator’s analysis of the relative performance and financial strength of the water and wastewater companies in England and Wales. It is based on information that companies published in their annual performance reports for the 2015-16 financial year in July 2016 and their responses to additional questions that Ofwat asked them about their published data.
Commenting on the publication of the report, Keith Mason, Ofwat Senior Director, said:
“A financially resilient water sector is vital if we are all to have continued trust and confidence in water and wastewater services.
Our report and the information companies publish will help investors, customers and others understand companies’ financial health and challenge them where there may be risks.
Where risks emerge, we expect companies to step up to the challenge. Where they fall short, we will step in to protect customers.”
Notes for Editors
- Ofwat’s financial resilience report forms part of its financial monitoring framework, which it launched in 2015, to gather, analyse and report on information on the regulated companies which would provide a clear view of their financial health and longer-term financial viability and resilience.
- The financial monitoring framework is part of Ofwat’s wider approach for monitoring and assuring delivery by companies. Under this approach, companies are expected to raise any issues or risks with their performance with the regulator at the earliest opportunity.
- Ofwat expects each water company to be transparent and to provide information to their customers and stakeholders that enables them to understand how the company is performing. This includes publishing an annual performance report by July each year setting out its performance for the previous financial year. Companies must also have processes in place to ensure that this information can be trusted.