13 November 2007
Water watchdog Ofwat has come in for heavy criticism in the House of Lords.
A peers' committee on regulators has reported that consumers across England and Wales are not being provided with sufficient choice - and that Ofwat is not doing enough to ensure a competitive market.
The comments were contained in the group's overview report, which added that Ofwat differed from other industry watchdogs in its failure to promote competitiveness among firms.
Committee chairman Lord McIntosh of Haringey commented: "Ofwat must do more to encourage competition amongst water suppliers.
"Many of the UK's economic regulators have done an excellent job in ensuring their markets are competitive and provide good value for the customer. Unfortunately in the water industry this has not been the case."
Reacting to the report, Chief Executive of Ofwat Regina Finn said that, due to "very restrictive" legal conditions, the water industry was less competitive than the telecoms and energy sectors.
She added that "fewer than one water customer in ten thousand" could pick and choose their supplier.