Background and Purpose
The Water Industry Act 1991 (“the 1991 Act”) enables the Welsh Government to publish a statement setting out strategic priorities and objectives (SPS) for Ofwat in carrying out its regulatory functions relating wholly or mainly to Wales. Ofwat is the independent economic regulator for the water industry in England and Wales. This SPS sets out the Welsh Ministers expectations for Ofwat to engage proactively and transparently with Welsh stakeholders and to develop a regulatory approach best able meet the specific requirements of Wales.
Key stakeholders were consulted between November 2025 and January 2026 in accordance with section 2B of the 1991 Act. The Explanatory Memorandum provides that consultees were generally supportive of the draft SPS.
Procedure
Other procedure.
The Welsh Ministers have laid a draft of the Statement before the Senedd. If, within 40 days (excluding any days when the Senedd is: (i) dissolved, or (ii) in recess for more than four days) of the draft being laid, the Senedd resolves not to approve the draft Statement then the Welsh Ministers must not issue the Statement.
If no such resolution is made, the Welsh Ministers must issue the Statement (in the form of the draft).
Scrutiny under Standing Order 21.7
1. The first paragraph of the Statement provides that the Statement reflects the Welsh Government’s “policy intent outlined in the the Green Paper Reforming Water Governance for Wales”. The Green Paper referred to does not exist, however a Green Paper titled “Shaping the Future of Water Governance in Wales” was published on 3 February 2026. It would be clearer if this introductory paragraph of the Statement referred to the correct Green Paper.
Welsh Government response
A Welsh Government response is required.
Legal Advisers
Legislation, Justice and Constitution Committee
3 March 2026