Regulatory Risk Strategies: The Impact of Risk-Based Regulation in the Provision of Safe Drinking Water in England and Wales

Abstract

Technical regulation of the abstraction, treatment, and delivery of up to 15 billion litres of drinking water per day by the water industry is highly specialised and complex. The purpose is to ensure that safe, clean water is provided to over 61 million consumers, safeguarding public health and the economy by minimising risks and, consequently, severe incidents.

Regulation has been widely studied for over four decades to understand what makes effective regulation. This has led to the development of concepts, theories, and explanations of compliance, as well as strategies and policies for regulators to implement. There has been little to no practice-based research into the mechanisms of regulation and how they operate. The paucity of research is further emphasised in the highly complex field of technical regulation, particularly in drinking water.

This study addresses these gaps by analysing and synthesising over 34 hours of interviews with senior executives, using qualitative thematic coding alongside quantitative data from over 30 years of regulatory delivery to generate unique insights into the complex regulatory architecture.

The findings identify the decisions made by senior executives that balance legal duties, business risks, and the societal purpose of providing wholesome water. While the findings reveal subtle differences in the emphasis on priorities, the regulator's effectiveness in delivering regulation and the government's priorities through legislation play a critical role in shaping the outcomes expected of companies.

This thesis contributes to practice-based research by conceptualising regulatory strategy and delivery. It acknowledges the controls within the legislative framework and regulatory delivery that govern the company's compliance outcomes. The concepts of Regulatory Stack and Regulatory Delivery Platform are developed to capture these processes, describing how regulations are regarded, and the foundations of strategic alignment, legitimacy, independence, behaviour, culture, and risk-based methodologies of the regulator, shaping corporate risk strategy and ultimately outcomes.

Date of Award	Nov 2025
Original language	English
Awarding Institution	Aston University
Supervisor	Matthew Olczak (Supervisor)