Ofwat makes it mandatory to meet BLTG principles
Ofwat has made it compulsory for all water companies to meet new objectives about board leadership, transparency and governance (BLTG), including the need to establish a purpose, strategy and set of values.
Company boards must also be satisfied that these, and its culture, reflect the needs of all those it serves.
Following a consultation, all 17 water companies in England and Wales – as well as Bazalgette Tunnel Limited, known as Tideway, which is the only licensed infrastructure provider – have agreed to Ofwat modifying their licences.
Aileen Armstrong, senior director of finance and governance at Ofwat, said: "These changes are part of our wider package of reform to rebuild trust and confidence in the water sector and safeguard the interests of customers.
"The corporate behaviour of some companies, along with significant service failures, has damaged trust in the sector, so it is only right that company boards, through their leadership, take ownership of how they meet these objectives.
"These should inspire companies to take full responsibility for understanding and delivering what is right for their customers and the environment, and place those needs at the heart of their business."
The changes made insert a requirement into the companies’ licences that make it mandatory for companies to meet the objectives of the BLTG principles.
- Ofwat sets out strategy to transform sector's performance Ofwat has published a new strategy to help transform water company performance, meet long-term challenges and embed public... Read More >
- Renationalisation may cost just £14.5 billion, Moody's says The cost of renationalising the water industry could be significantly lower than previous estimates, according to new... Read More >
- CCC report calls on water companies to restore peatland A report by the Committee on Climate Change (CCC) has put forward a number of suggested measures to reduce emissions in... Read More >
- Reaching net carbon zero In summer 2019, the water industry committed to reach net carbon zero by 2030. This is a very ambitious aim and... Read More >
- Meeting AMP7 leakage targets Damian Crawford, head of smart networks & leakage at Stantec, discusses how becoming data-rich and knowledge-smart can... Read More >
- Rewarding excellence WWT content director Alec Peachey looks ahead to next year's Water Industry Awards. Read More >
- Delivering a smart network Tom Mills, senior director UK&I at Sensus, examines what a smart water network really means - and how to get there. Read More >
- A watershed moment for the water industry? Tessa Harding, director of water at Thomson Environmental Consultants, discusses the government's Environment Bill. Read More >