Office of Water Services (OFWAT): Company Regulatory Reporting

This series contains water company returns or submissions provided to Ofwat as required to inform regulatory processes and functions. The records document the development of regulatory approaches to economic oversight of essential public services.

Office of Water Services

Company Regulatory Reporting is a core regulatory function of the Water Services Regulation Authority (Ofwat), originating in the early years following the privatisation of the water and sewerage industry in England and Wales. From the early 1990s, Ofwat required water companies to provide structured annual and periodic submissions containing detailed financial, operational and performance information. These requirements evolved into formalised annual data collections known as the June Returns and July Returns, which were maintained throughout the 1990s and early 2000s as key tools for monitoring company performance and informing regulatory decisions.

To ensure comparability and consistency across the sector, Ofwat issued Regulatory Accounting Guidelines (RAGs), setting out the accounting and reporting principles companies must use when preparing their statutory regulatory submissions. These RAGs underpin the production of annual returns, Annual Performance Reports and Price Review submissions, forming a coherent framework for the collection of regulatory financial and performance data.

Company Regulatory Reporting includes a range of recurring reporting products, most notably the June/July Returns, Annual Performance Reports (APRs), and the extensive datasets and narrative material or reports provided by companies as part of the five-yearly Price Review process. These reports supply Ofwat with essential evidence used to assess financial resilience, service quality, operational efficiency and long-term investment needs within the sector. They also support comparative analysis across companies and feed directly into the determination of price controls.

Over time, the structure of these reporting obligations evolved. The introduction of APRs from 2015 onwards modernised the annual reporting framework, combining quantitative performance measures with company-led narrative reporting. Nonetheless, the underlying purpose remained consistent: to enable Ofwat to discharge its statutory duties and to maintain effective regulatory oversight of the water industry.

Company Regulatory Reporting remains an integral activity within Ofwat's regulatory framework. It supports the organisation's statutory functions, including monitoring sector performance, ensuring value for money and determining periodic price controls.