Ofwat has vowed to strengthen water companies’ whistleblowing procedures, to encourage more employees to come forward.
The water regulator is consulting on a new set of guidelines which it will expect water companies to implement.
It comes following a review of the sector found that there are “some gaps” and inconsistencies between different companies’ approaches to whistleblowing.
The consultation document adds: “Our strategy for the sector sets out our goal of transforming water companies’ performance for customers.
“Whistleblowing can play an important role in enabling companies and regulators to identify and tackle areas of company performance that need improvement, and in building trust and confidence in how companies are delivering for their customers.
It continues: “There are a range of approaches to whistleblowing and there are some gaps and opportunities for more consistency within the water sector.
“Our aim is that sharing our good practice expectations will enable companies to reflect on the value of whistleblowing and whether their approach to it is driving the best outcomes for their company and customers.”
The water regulator has set out a 10-step best practice guide which includes:
- A clear understanding of whistleblowing law
- An open and honest culture
- Multiple and alternative channels for staff to speak up
- A comprehensive, accessible, written policy
- Regular reviews of whistleblowing policies
- A clear process for managing disclosures
- Clear outcomes and insight
- An executive team and board that have oversight and a clear line of sight of what is happening with whistleblowing
- A board that regularly considers the effectiveness of its whistleblowing policies and procedures
- Regular communications and training for workers on whistleblowing
The consultation document adds: “Whistleblowing is an essential pillar of a well-functioning company.
“It is an important part of the internal systems and controls a company has to understand and effectively manage its activities and risks, including in relation to its compliance with its legal obligations. Where there are failings in a company’s culture and governance through, for example, not having a robust compliance culture where staff feel supported to do the right thing, we would have concerns.”
In a past enforcement case Ofwat found that Southern Water had breached licence conditions relating to the adequacy of the company’s whistleblower culture and processes.
Subsequently, in June 2019, Ofwat wrote to water and wastewater companies setting out its expectations that they and their boards consider, amongst other things:
- Whether the governance and assurance arrangements they have in place give them the right information about their company’s performance
- How they encourage an appropriate culture in the organisation as a whole
- How they encourage their people to speak up if something is wrong