The UK government seeks to reform England and Wales’ struggling water industry through an independent commission, inviting input from the public, environmental groups, and investors. The review comes at a time of widespread frustration over sewage spills, rising water bills, and concerns about accountability in the sector.
Sir Jon Cunliffe, former deputy governor of the Bank of England and chair of the commission, is leading the call for evidence, which was officially launched in Manchester. He acknowledges that trust in the system has “broken down on all sides,” citing regulatory gaps, poor decision-making, and a history of short-term fixes that have left the sector in crisis. However, he insists that these problems are not an inevitable result of privatisation, despite calls from campaigners to bring the water industry back under public ownership.
The water sector has faced mounting criticism following revelations that companies dumped 3.6 million hours of sewage into rivers, lakes, and seas in 2023, more than doubling the previous year’s total. In response, the government has ruled out nationalisation, arguing that the process could cost taxpayers up to £100 billion while failing to address immediate environmental and infrastructure challenges. Instead, the focus is on attracting private investment to modernise sewerage systems and upgrade reservoirs.
In an effort to make the sector more accountable, new laws will give regulators the power to ban bonuses for water company executives and introduce prison sentences of up to two years for obstructing investigations. The financial struggles of Thames Water, which is drowning in approximately £19 billion of debt, have only added to public concern. A recent High Court ruling secured a £3 billion rescue loan, averting the possibility of the company falling into temporary government control.
The commission’s report, expected in June, aims to propose “ambitious changes” to address competing regulatory demands, climate pressures, and financial instability within the sector. However, its findings will not affect Ofwat’s current decisions on water bill increases, which are set to rise by an average of £123 per year from April.
The debate over water industry reform is likely to intensify in the coming months, with campaigners, industry leaders, and regulators all weighing in. The public is being urged to share their views to help shape the future of water management in England and Wales. For further details on the review process, visit Ofwat’s official website.
For the latest updates on London’s biggest stories, from politics and culture to transport and sustainability, visit EyeOnLondon. Stay informed, get involved, and share your thoughts. Have your say in the comments below. Follow us for more in-depth coverage and insights into the issues shaping the capital.
Follow us on:
Subscribe to our YouTube channel for the latest videos and updates!
We value your thoughts! Share your feedback and help us make EyeOnLondon even better!
