Sewage: Warnings of “revolving door” between water companies and regulators

26 Jun 2023

EMBARGO: Immediate Release

Investigation by the Liberal Democrats finds evidence of revolving door between water companies and OfWat
Senior executives involved in regulation regularly moving between profiteering firms and watchdogs
No Government agency or water regulator holds data on employees from water firms
Liberal Democrats call for an investigation to be carried out by the Advisory Committee on Business Appointments

An investigation by the Liberal Democrats, including Freedom of Information Requests and Parliamentary Questions, has revealed there is no monitoring of “revolving doors” between water firms and their regulators.

Liberal Democrat Environment spokesperson Tim Farron has revealed that the Government holds no data on how many former water company employees now work for the Environment Agency, Ofwat or the Drinking Water Inspectorate. The three organisations are tasked with regulating and punishing water firms when they break the law. A Government Environment Minister made the worrying admission to Tim Farron in a written response.

The Liberal Democrats have also revealed through a Freedom of Information Request that the water industry regulator, Ofwat, also holds no records of employees who have previously worked for a water company. The party has criticised Ofwat for failing to stop water firms polluting rivers and lakes with sewage.

Research by the Liberal Democrats has found the Director for Regulatory Strategy at the country’ largest water firm, Thames Water, was previously an Ofwat employee. Meanwhile, a senior Principal at Ofwat, moved directly from Thames Water where they worked on market development. The party has also found links between Southern Water, Northumbrian Water and South West Water.

There are now calls for the Advisory Committee on Business Appointments, an independent body, to carry out an investigation into the extent of a revolving door in the water industry.

Liberal Democrat Environment spokesperson Tim Farron MP said:

"The entire water industry is broken. Frankly, the whole thing stinks.

“I fear we may now have a revolving door between water companies, the regulator and even Government agencies. This raises questions about conflict of interest. You could have regulators who feel sympathetic to mates at their former company, or water company executives who know how to avoid regulations. If this is happening, then the whole thing is a farce.

"We can’t have a cosy job club in this industry given the environmental scandals being committed.

“It is scandalous that the Government and regulators let these firms get away with it. Clearly something has gone horribly wrong. Ministers need to stop dismissing the sewage crisis and commit to reforming the industry. This should start with scrapping Ofwat and replacing it with a regulator with real teeth, as well as shaking up the water firms. Until this happens, our rivers and lakes will continue to be ruined by foul sewage pumping.”

ENDS

NOTES TO EDITORS

Reported here in The i.

Parliamentary Question tabled by Tim Farron here.

Freedom of Information response from Ofwat

Freedom of Information Act (FOIA) 2000 - Request for Information

Reference: FOI 202303042

Dear [REDACTED]

Thank you for your request for the following information.

The number of staff at Ofwat who have previously worked for a water company? E.g Thames Water, United Utilities ect

We can confirm that we do not hold this information.

We trust this information is helpful to you. Please see the Annex for additional information on

our FOI/EIR processes and your right of review.