(b) secure that no undue preference (including for the relevant body itself) or undue discrimination is shown in the fixing of water or drainage charges; (c) secure that no undue preference (including for itself) is shown and that there is no undue discrimination in the doing by an appointed company of things which relate to the provision of services by itself or another appointed company or things as relate to the provision of services by a water supply or sewerage licensee; (d) secure that consumers are protected as regards benefits that could be secured for them from the proceeds of any disposal of any [appointed] company’s protected land; (e) ensure that consumers are protected as regards any activities of an appointed company which are not attributable to the exercise of its functions under the Act, in particular by ensuring that any transactions are carried out at arms-length and that in the exercise of its functions companies maintain and present themselves in a suitable form and manner; and (f) contribute to the achievement of sustainable development (sustainability duty).
9. Ofwat is also subject to the ‘Growth Duty’ which requires that Ofwat, in the exercise of its regulatory functions, has regard to the desirability of promoting economic growth. 36 In carrying out this duty, Ofwat must consider the importance of ensuring that any regulatory action it takes is needed and proportionate. 37 10. In exercising its powers and performing all of its duties, Ofwat is required to have regard to the principles of best regulatory practice, including the principles under which regulatory activities should be transparent, accountable, proportionate, consistent and targeted only at cases in which action is needed.
38 Ofwat and the water companies also have specific environmental duties in relation to the protection of areas of natural beauty, special environmental interest and historical sites. 39 36 The Economic Growth (Regulatory Functions) (Amendment) Order 2024 amends Schedule 1 of The Economic Growth (Regulatory Functions) Order 2017 to list Ofwat as a regulator to which the Deregulation Act 2015 , section 108 now applies. 37 The Act, section 108(2). 38 The Act, section 2(4). 39 The Act, sections 3–5. 27