About Consultation
This consultation invites views on our proposals to introduce a rule to require companies to have arrangements in place for involving consumers in their decisions as part of new powers to set rules about remuneration and governance under section 35B of the Water Industry Act 1991.
The proposals build on a consultation we launched in October 2024 which set out our initial thinking on three remuneration and governance rules required under the legislation. This consultation only focuses on the rule on consumer involvement in company decision-making.
The first rule on performance-related executive pay came into force in June 2025. Rules on fit and proper persons, and the governance of companies more broadly, are due to be consulted on later this year.
The overarching objective of the consumer involvement rule is to ensure water companies listen to, understand, and take account of the experiences and needs of consumers in decisions that most affect them. This will lead to better outcomes for people and communities, and, in line with the other remuneration and governance rules provided for in the Water (Special Measures) Act 2025, help to rebuild public trust in the water sector.
Subject to this consultation, the Consumer Involvement Rule will cover all types of consumers of water company services, including both household and non-household, and will apply to all water companies and new appointees (also known as NAVs). Our intention is for the rule to come into force on 1 April 2026 for incumbent water companies and on 1 April 2027 for new appointees.
In 2027, we also plan to conduct a review of this rule to evaluate the impact it has had and outcomes delivered, and if necessary, consider what new or revised requirements might be needed.
Responding to our consultation
We are asking for responses to the consultation by 1 October 2025.
We are seeking views on the updated proposed rule and guidance and ask stakeholders to make us aware of any considerations or challenges with implementation that we may encounter.
Please email responses to: [email protected]
We intend to publish responses to this consultation on our website at www.ofwat.gov.uk . Subject to the information outlined in the consultation document, by providing a response to this consultation you are deemed to consent to its publication.