Overview

This bill aims to improve financial transparency within the UK water industry by mandating the publication of clear and accessible financial overviews from water companies. This will allow consumers to better understand how water companies are spending their money and managing their finances.

Description

The core of the bill amends the Water Industry Act 1991. It introduces a new section (35E) requiring water companies ("undertakers") to publicly publish an easily understandable summary of their financial position. This summary must include details about their capital and debt, and significant changes in these areas over the previous and next 12 months (if publicly announced). The "Authority" (likely the Ofwat regulator) will determine the exact information to be included and the format for publication. This overview must be published prominently on each company's website at least annually. The bill also establishes a 7-day period for the Secretary of State to review draft rules implementing these new financial transparency requirements. This review period is a concession designed to ensure compliance with regulations. Amendments were debated between the Commons and Lords regarding the specific wording and implementation of these requirements, ultimately resulting in the compromise reflected in the final bill.

Government Spending

The bill itself doesn't directly allocate new government spending. However, the implementation and enforcement of the new financial transparency requirements may require some expenditure by the regulatory body (Ofwat) for monitoring and enforcement. The exact cost is not specified in the provided text.

Groups Affected

• Water companies: They will be directly affected, incurring costs associated with preparing and publishing the required financial overviews.
• Water consumers: They will benefit from increased transparency, enabling them to better understand water company finances and potentially hold them more accountable.
• Ofwat (the water regulator): This body will be responsible for defining the format and content of the financial overviews and enforcing compliance, requiring additional resources.
• The Secretary of State: They will have a role in reviewing the draft rules before implementation.

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