Major Review Calls for Abolishment of Ofwat and Comprehensive Reforms in Water Regulation

The Independent Water Commission has proposed radical changes to the water sector in England and Wales, suggesting the elimination of Ofwat, the regulator responsible for monitoring water company charges, and the Drinking Water Inspectorate, which ensures the safety of public water supplies. This extensive report, released by Sir Jon Cunliffe, a former deputy governor of the Bank of England, includes 88 recommendations aimed at revitalizing the troubled industry, responding to growing public dissatisfaction with water companies' environmental accountability and service quality. When questioned about the regulator's effectiveness, the report's author confirmed that it has not succeeded in fulfilling its role.

In addition to abolishing Ofwat and the DWI, the report advocates for the replacement of the environmental regulatory roles currently held by the Environment Agency and Natural England. Instead, it calls for a unified water regulator to oversee operations in both England and Wales, highlighting the failures of the current regulatory system that has allowed water companies to prioritize shareholder payouts while neglecting infrastructure maintenance and public trust. Sir Jon emphasized the importance of restoring confidence in the sectors, ensuring fair billing, effective regulation, and corporate actions aligned with public interests.

Other proposals in the report emphasize the need for enhanced consumer advocacy, the introduction of nine regional water authorities to tackle local concerns, and improved environmental regulations along with stricter oversight of company governance. This comprehensive review comes after an extensive period of analysis and public engagement. However, critics like James Wallace from River Action argue that the commission's recommendations do not go far enough, accusing it of merely offering superficial changes without tackling the root issues stemming from decades of privatization. He insisted on the necessity of a robust recovery plan for the nation's waterways and highlighted the urgent need for government intervention to regain public trust.

In response, Water UK acknowledged the report's significance, agreeing that the current system is failing, and emphasized the need for swift government action on the recommendations. The organization views these proposed reforms as a crucial step toward securing water supplies, fostering economic growth, and eradicating sewage pollution in natural water bodies. The onus now lies on the government to consider and act upon these suggestions to ensure substantial progress within the sector.