Ofwat announces new Board, governance principles
Ofwat's revamped Principles put strong focus on purpose, values and culture.
ENGLAND AND WALES, FEB 5, 2019 -- Ofwat, the economic regulator of the water sector in England and Wales, has published its revised board leadership, transparency, and governance Principles. First introduced in 2014, Ofwat launched a review of its Principles last year, following public concerns raised over corporate behaviors in the water sector.
Among the changes announced today by the regulator, is a specific requirement for water company boards to establish their company's purpose, strategy and values and to be satisfied that these and its culture reflect the needs of all those it serves. Boards will be expected to monitor and assess the culture and values of the company and take action where they are not aligned with its purpose.
The revised Principles have also been streamlined and consolidated to make companies' responsibilities clearer and to emphasize the importance of strong board leadership in the sector.
The new principles will come into effect from 1 April 2019. Ofwat is proposing to consult further on amending companies' licenses to make the objectives mandatory; the regulator intends to kick-start this process in spring 2019.