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Ofwat could be scrapped in water industry shake-up

Ofwat could be scrapped in water industry shake-up
Emma Lunn
Written By:
Posted:
23/10/2024
Updated:
23/10/2024

The current water regulator could be abolished in the largest review of the industry since privatisation.

An Independent Commission into the water sector and its regulation is being launched by the government today (23 October).

The move comes as anger has intensified about the UK’s polluted waterways and crumbling infrastructure. Meanwhile customers’ bills are rising – some firms have proposed bill hikes of up to 84% by 2030.

Launched by the UK and Welsh governments, the commission will report back next year with recommendations to the Government on how to tackle what the Government calls “inherited systemic issues in the water sector”.

The recommendations will form the basis of further legislation to attract long-term investment and clean up UK waters for good.

Former deputy governor of the Bank of England, Jon Cunliffe, will chair the commission which will draw upon a panel of experts from across the regulatory, environment, health, engineering, customer, investor and economic sectors.

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He said: “Working over many years in the public sector, in environment, transport and the Treasury, and the Bank of England, I have seen how the regulation of private firms can be fundamental to incentivising performance and innovation, securing resilience and delivering public policy objectives.

“I am looking forward to working with experts from across the water sector, from environment and customer groups and investors, to help deliver a water sector that works successfully for both customers, investors and our natural environment.”

‘Our water system urgently needs fixing’

Steve Reed, Secretary of State, said: “Our waterways are polluted and our water system urgently needs fixing. That is why today we have launched a Water Commission to attract the investment we need to clean up our waterways and rebuild our broken water infrastructure.

“The Commission’s findings will help shape new legislation to reform the water sector so it properly serves the interests of customers and the environment.”

A set of recommendations will be delivered to the Defra Secretary of State, and Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs next year. The UK Government and Welsh Government will then respond with the proposals they intend to take forward.