As a natural monopoly, it is important that the water sector has strong corporate governance running through companies to build public trust, encourage long-term decision making and ensuring the priorities of companies align with those of customers and the environment. To achieve this, Ofwat uses tools including company licences, our price control and statutory rules which together both incentivise and hold companies accountable for their governance structure and decision making.
These include:
- Remuneration and Governance Rules
- Performance related executive pay cost recovery mechanism
- Board, Leadership, Transparency and Governance Principles
Consultations
You can read our most recent consultations relating to our sector governance tools below:
- Consultation – Proposed update to Performance related executive pay Prohibition Rule
- Consultation – Fitness and Propriety Rule
- Consumer Involvement in Company Decision-Making Rule
- Consultation – Performance related executive pay (PRP) Prohibition Rule
Reports
The following are Ofwat’s reports on company compliance with, and our assessment of, sector governance requirements: