Ofwat will be granted powers by the department for environment, food and rural affairs (Defra) to modify water companies’ licences as part of the upcoming Environment Bill.
The move, which had been considered previously, was confirmed by the deputy director of water services at Defra Sophie Broadfield.
Speaking at the Westminster Energy Environment and Transport Forum on England’s Water Market, Broadfield said the government “strongly supports” Ofwat having that power.
She said the scrutiny the regulator had applied to address the rising costs of capital and action taken to control it was welcomed.
She also said greater regional planning is needed to bolster the country’s water infrastructure and improve resilience.
The sector is “not in a bad place, but there’s always more to do”, Broadfield said, and warned that the government did not want the industry “to sit on its laurels”.
Drought resilience is on the agenda for government and an announcement from Defra is expected to coincide with the upcoming Budget, which will take on-board views from the National Infrastructure Strategy.
AThe National Policy Statement will streamline the planning process for developments that will boost resilience.
Broadfield said this will mean anything “nationally significant” can be approved by the Secretary of State rather than local planning authorities.
Projects must demonstrate the gains for the environment to be considered for approval.