Ofwat details its enforcement powers and policy

Ofwat is consulting until 24 March on its enforcement guidance, which it said provides clarity to water companies and others as to what they should expect in relation to a breach of an obligation that Ofwat enforces.

The consultation detailed Ofwat’s enforcement powers under both the Water Industry Act 1991 and the Competition Act 1998.

It covered a range of matters, including the regulator’s aims when it takes enforcement action, the process it will follow and the range of possible sanctions – which included financial penalties, directions and the “ultimate sanction” of special administration.