Speaking to Utility Week, Ross said water companies are “in the frame” for taking over from the Environment Agency on delivering flood defence schemes.
She said: “I’m really conscious that having created a regulatory regime focussed on outcomes that does put water companies in the frame for thinking about things that deliver outcomes that lie beyond the boundaries of the traditional water company.
“I think flood defence and flooding issues are one element of that.
“I can envisage a situation in which water companies could perform useful functions around flood protection and flood defences.”
Ross said that this point in the regulator’s development of the next price control is “the right time to ask the questions” as to whether water companies should take on flood defence responsibilities.
However, she added that she would want any change to the current system to be “properly market tested” to ensure it is the most efficient way of delivering flood defences.
One of the UK’s biggest water companies, Severn Trent, supported the idea of a debate on water companies’ role in flood defences. A spokesperson said: “Investment in flood defence management is becoming increasingly important, but the budgets of local and national government are increasingly under pressure.
“The question is: could the water sector do more in this area, as we did before 1989? We don’t know all the answers, but we think the question is very much worthy of debate.”
The debate has been reignited by Lord Moynihan, who questioned the Department for Environment, Food and Rural Affairs on companies’ role in the co-ordination and implementation of flood defences.
In a written Parliamentary question, Lord Moynihan also asked whether a “full and transparent tender process” would be launched, and if the water companies’ work on flood defences would fall outside of their regulated duties.
Responding to the question, Lord Gardiner said the government has not asked water companies to do more, and is not planning to launch a tender process.