The water sector is under fire, facing a backlash over sewage spills, agricultural pollution, shareholder payouts and weak customer satisfaction.
Now, MPs are launching a major inquiry to address these issues and restore public trust.
The Environment, Food and Rural Affairs (EFRA) Committee’s “Reforming the Water Sector” inquiry will scrutinise resilience, water security, pollution and financial practices.
Evidence sessions start in January, focusing on Ofwat’s pricing decisions and testimony from poorly performing companies.
Chair of the EFRA Committee, Alistair Carmichael MP, said: “Over the past few years we have seen a strong backlash to water companies’ failings.
“Companies have breached environmental rules over sewage discharges while paying out huge dividends to shareholders and big bonuses to executives, even as they have taken on ever more debt.
“In this inquiry our Committee will investigate the deep-rooted problems underlying the industry.
“We need a water system that is fit for the future. The Government and the regulator Ofwat urgently need to restore public confidence in the sector.”
The inquiry will also assess government progress on the Water (Special Measures) Bill and independent sector reforms due by summer 2025.
