We asked whose responsibility it is to balance environmental need with affordability. Ofwat told us that there is no formal basis for making trade-offs between affordability and making improvements, nor was there in previous price reviews.87 Defra acknowledged that there had been “deep under-investment” leading to a big jump up now.88 Water UK told us that a former minister had turned down a reservoir application in the past on the basis of “no immediate need”. It also told us that it would h...

We asked whose responsibility it is to balance environmental need with affordability. Ofwat told us that there is no formal basis for making trade-offs between affordability and making improvements, nor was there in previous price reviews.87 Defra acknowledged that there had been “deep under-investment” leading to a big jump up now.88 Water UK told us that a former minister had turned down a reservoir application in the past on the basis of “no immediate need”. It also told us that it would have been cheaper to start infrastructure projects when interest rates were lower.89 First Economics told us that the previous price review was a “lost op Type: conclusion | Number: 26 | Response status: not_addressed Government response: Ofwat has a statutory duty to ensure that water companies can finance their functions, including investment in infrastructure and environmental improvements, whilst protecting customers. It is for water companies to propose investment programmes that deliver the