An independent review into the water industry could consider abolishing regulator Ofwat among other measures to reform the sector, following a public outcry over bills, bonuses and sewage pollution. The UK and Welsh governments have announced the largest review of the sector since privatisation, with an independent commission chaired by former deputy governor of the Bank of England Sir Jon Cunliffe.
The commission will have no limits in the scope of its potential recommendations, including wholesale reform of Ofwat and how it interacts with other watchdogs such as the Environment Agency. The aim of the review is to tackle systemic problems and secure the infrastructure needed to meet future challenges, drive economic growth, and clean up Britain’s rivers, lakes, and seas.
Ministers anticipate that the recommendations from the commission, due to be delivered in the second quarter of next year, will form the basis of further legislation to attract long-term investment and improve the state of the country’s polluted waterways and coasts. The move comes in response to underinvestment, population growth, and extreme weather caused by climate change putting pressure on England’s water system, leading to flooding, supply issues, pollution, and leakages.
Fresh figures released by Ofwat revealed that water companies have requested bill increases exceeding their initial requests, with the average bill in England and Wales projected to grow by 40% by 2030. Despite attempts to curb these increases, companies are asking for more funding to upgrade their infrastructure.
The commission’s objectives include establishing a clear vision for the water sector, better regulation, attracting investment, safeguarding consumers, and ensuring infrastructure resilience. It aims to address the urgent need for improving water quality and the resilience of the water sector for future generations.
Various stakeholders have expressed their support for the review, with Environment Secretary Steve Reed emphasising the importance of fixing the water system and cleaning up waterways. The commission’s recommendations are expected to drive better outcomes for customers and the environment, aligning with the government’s efforts to address water pollution and scarcity.
In conclusion, the water sector review led by an independent commission seeks to address long-standing issues in the industry, including pollution, funding, and governance. The proposed reforms aim to ensure a sustainable and resilient water infrastructure for the future, with a focus on customer interests and environmental protection. The commission’s findings are anticipated to shape legislative changes that will drive investment and facilitate the clean-up of polluted waterways and coasts.