Statutory Instruments with Clear Reports

under Standing Order 21.7

26 September 2022

SL(6)234 Strategic Priorities and Objectives Statement to Ofwat issued under section 2B of the Water Industry Act 1991

Procedure: Draft Negative

Under section 2B of the Water Industry Act 1991 (as amended by the Water Act 2014), the Welsh Ministers may from time to time publish a statement (SPS) setting out strategic priorities and objectives for Ofwat to follow in carrying out its relevant functions relating to companies wholly or mainly in Wales.

Ofwat must carry out these functions, which include the 5 yearly price determinations in accordance with the SPS. These include the expectations for water company business plans (methodology) which sets the framework for investment and service level priorities and determines water charges. The next price review determination will be in 2024 for the period 2025–2030.

This instrument constitutes the SPS and replaces the current version published in 2017. The SPS sets out a number of ambitions for the water industry in Wales, focussed on supporting the delivery of the Programme for Government, the Water Strategy for Wales and distinct Welsh Government priorities and legislation. These are grouped in 5 key themes – Climate and Nature Emergencies, Environment, Resilience, Asset Health and Customers and Communities.

In accordance with section 2B of the Water Industry Act 1991 key stakeholders were consulted between June 2021 and February 2022. The Explanatory Memorandum provides that consultees were generally supportive of the draft SPS.

Parent Act: Water Industry Act 1991

Date Made: Not stated

Date Laid: 6 July 2022

Coming into force date: Not stated