Ofwat should be abolished and replaced by a new single regulator with the power to oversee the entire water system.
Says a scathing report, led by Sir Jon Cunliffe – for the Independent Water Commission – which sets out 88 recommendations to the UK and Welsh governments, to fix what he describes as a broken system, plagued by fragmented oversight, failing infrastructure and falling public trust.
The blistering report says Ofwat has failed to protect the public interest.
Sir Jon Cunliffe’s final report published today sets out a framework aimed at rebuilding trust, strengthening governance and delivering long-term water security. It follows nine months of evidence gathering and more than 50,000 responses.
“The current regulatory landscape is fragmented and overlapping and fully joined-up regulation is essential for the system to meet the demands of the future and ensure that private water companies act in the public as well as the private interest,” the report warns.
Under the plans, Ofwat, the Drinking Water Inspectorate and relevant functions of the Environment Agency and Natural England would be merged into a powerful new integrated regulator.
In Wales, Ofwat’s economic role would be transferred to Natural Resources Wales.
The report also recommends eight new regional water system planning authorities in England and a national one for Wales, designed to give local communities a real say in infrastructure and investment decisions.
Customers would be better protected too.
The Commission proposes upgrading CCW into a dedicated Ombudsman for Water and shifting consumer advocacy to Citizens Advice. It backs a new national social tariff to standardise support for low-income households, tackling wide regional disparities.
The Commission doesn’t pull punches on poor infrastructure.
It reveals that at the current pace it would take 700 years to replace ageing water mains, it calls for mandatory water metering, stronger abstraction controls and reforms to industrial tariffs.
Digital monitoring, third-party assurance, and a major crackdown on sewage spills are also among the proposals.
On corporate governance, the report urges regulators be given powers to block changes in ownership and introduces ‘minimum capital’ rules to reduce debt dependency.
It also proposes inserting a ‘public benefit’ clause into company licences.
Sir Jon Cunliffe said:
Restoring trust has been central to our work. Trust that bills are fair, that regulation is effective, that water companies will act in the public interest and that investors can get a fair return.”
“In this report I have considered what is best for the long-term future of water. This is a complex sector with a highly integrated system, responsible for the second-largest infrastructure programme in the UK.”
“Resetting this sector and restoring pride in the future of our waterways matters to us all. In countless conversations in the last nine months I have been struck by the urgent need and passi
on for change. Doing this will require hard work, strong leadership and sustained commitment. But it can and must be done.”
The Commission has set out which changes can happen now and which will require new legislation.
But the message is unmistakable: the system has failed, reform is no longer optional.
Ofwat goes down the drain appeared first on Energy Live News.