Ofwat itself has accepted its fate after the Cunliffe Report said it had failed the public and should be scrapped.
Sir Jon Cunliffe leading the Independent Water Commission hammered the regulator yesterday and said it was no longer fit for purpose. It was the central plank of a wide ranging critique of the entire water sector, with 88 recommendationns set out to reform its reputation.
In reponse Ofwat issued a statement saying:
“The Cunliffe Report sets out a new direction for the water sector.
“While we have been working hard to address problems in the water sector in recent years, this report sets out important findings for how economic regulation is delivered and we will develop and take this forward with government.
“Today marks an opportunity to reset the sector so it delivers better outcomes for customers and the environment. Ofwat will now work with the government and the other regulators to form this new regulatory body in England and to contribute to discussions on the options for Wales set out in the report.
“In advance of the creation of the new body, we will continue to work hard within our powers to protect customers and the environment and to discharge our responsibilities under the current regulatory framework. We will also work collaboratively with all our stakeholders to ensure a smooth transition.”
Unions have also commented on the shocking report.
Gary Carter, GMB National Officer, said: “The Cuncliffe report lays bare what GMB has said for years – water privatisation has been a disastrous failure.
“Our rivers and waterways have been fouled, while bills rocket and fat cat bosses get rich. Meanwhile the water infrastructure crumbles through lack of investment. It’s a disgrace – and one Ofwat has overseen.
“Now is the time to fundamentally reform the water sector and renationalise this vital resource.”
And Mike Keil, Chief Executive of the Consumer Council for Water (CCW), added:
“Restoring public confidence in the sector hinges on whether water companies are committed to improving their culture, conduct and performance.
“People should also be able to use water without the worry of being able to afford their bill but April’s unprecedented rise in charges has compounded the struggles of millions of households. More people are turning to CCW to complain about not being able to afford their bill at a time when over 2 in 5 households have told us they’ve cut spending on essentials like food to make ends meet.
“The case for a single social tariff for water has never been more urgent or compelling and we’re pleased the Commission has recognised this.”
At the heart of this whole problem has been the behaviour of the water companies, marked out in the Cunliffe report, for poor customer service, lack of investment and huge bonuses.
Water UK the trade body representing the water supply and retaliers, admitted they had to accept their share of the problem.
“Everyone agrees the system has not been working. These recommendations should establish the foundations to secure our water supplies, support economic growth and end sewage entering our rivers and seas.
“The Independent Water Commission has written a comprehensive, detailed review of the whole sector, with many wide-ranging and ambitious recommendations. We now need some time to consider the detail and understand the implications.
“Crucially, it is now up to Government to decide which recommendations it will adopt and in what way but the Commission’s work marks a significant step forward.”
Water sector reacts to proposals to scrap Ofwat appeared first on Energy Live News.