Tim Farron calls for Ofwat to be scrapped after it gives green light for water companies to hike bills

Cumbrian MP Tim Farron is calling on the new Government to scrap the regulator Ofwat after it let water companies increase bills by an average of £94 over the next five years.

In the North West, United Utilities will increase bills for customers by 21%. Meanwhile the company also recently announced it will pay its investors £339m in dividends for this year, up from £310m for 2023.

According to the Environment Agency, United Utilities dumped more sewage than any other water company last year.

Tim and the Liberal Democrats are calling for Ofwat to be replaced with a new tougher regulator called Clean Water Authority which would have powers to:

•         Ban bonuses for water company bosses

•         Revoke the licence of poorly performing water companies swiftly

•         Force water firms to publish the full scale of their sewage spills

•         Reform water companies to put local environmental experts on the boards of companies

•         Set legally binding targets on sewage discharges

Tim said: “It is a national scandal that these disgraced firms are demanding more money from families and pensioners in a cost of living crisis, all whilst dumping raw sewage into Windermere, the River Kent, and the River Eden.

“Ofwat are effectively sanctioning the rise in bills for bill payers in communities like ours in order to make up for the fact that the water companies have squandered their profits and given it away in dividends and bonuses.

“Ofwat needs to be scrapped and replaced by a regulator with teeth. The Clean Water Authority would have the power to strip water companies of their licenses to operate and transform them into public benefit corporations where profits are invested into improving infrastructure – not lining the pockets of shareholders.

“Communities spoke loudly at the election, both here in Westmorland and across the country, demanding an end to the sewage scandal and water firms stuffing their pockets with bonuses and dividends. The Government must listen to the country.”