In an update on its good governance principles, first published in January 2014, Ofwat said there was “limited evidence” that most holding companies were meeting its criteria around transparency of information.
The regulated companies themselves had done better, the regulator said, with the appointment of independent chairs and board members, and regular reviews of board membership.
Progress has been made by the regulated parts of the businesses in meeting the regulator’s principles, including the appointment of independent chairs and board members, and regular reviews of the board make up.
Ofwat senior director of finance and networks Keith Mason said: “Good governance is vital. The regulated companies have made progress in making themselves more accountable to their customers by meeting our principles.
“That includes for some companies changing the composition and balance of their boards and committees. We want to see both regulated and holding companies making further progress, so we will be looking at their annual reports with interest”.
Ofwat will publish its findings in the autumn.