What is the Welsh Government doing to tackle monopolies in the water sector in Wales?
Most people in Wales receive their water services from Dŵr Cymru which is a not-for-profit company without shareholders. Profits are re-invested into providing customers water and sewage services – including expenditure on social tariffs and tackling discharges to rivers.
Water companies, as providers of essential services, require robust regulation to challenge them to operate efficiently and to drive forward improvements in performance and public service. Ofwat is the economic regulator for the water sector. Water charges, performance targets and levels of investment are set by Ofwat every 5 years via the statutory price review process. The water companies submit draft business plans to Ofwat setting out their proposals, and Ofwat may amend or challenge these via their draft determination.
The Welsh Government laid its Strategic Priorities Statement before the Senedd in 2023 for Ofwat to consider in undertaking their role as the economic regulator. This included a very strong emphasis on affordability and support for people who may struggle to pay their water bills as well as the need for substantial improvements in water company performance in the short and long term.