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<p>The Secretary of State has regular discussions with Ofwat and the Environment Agency
to discuss a range of issues associated with regulation including investigations and
enforcement.</p><p> </p><p>The government is committed to ensuring the regulators
have the tools they need to hold water companies to account. Therefore, in May 2023
Ofwat announced that its enforcement capacity would be trebled, following the approval
of an £11.3 million funding budget increase from Government. The Government has also
boosted funding for the Environment Agency with £2.2 million per year specifically
for enforcement activity.</p><p> </p><p>On 20 February, we announced that we are significantly
increasing our oversight of the water industry. The number of Environment Agency inspections,
including unannounced inspections, will rise to 4,000 by the end of March 2025 – a
fourfold increase. Our consultation on increasing permit charges for water companies
to enable these inspections is underway and due to close shortly.</p><p> </p><p>The
Government and regulators will continue to work together to hold water companies to
account for poor performance.</p>
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