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Water regulator to be scrapped as sewage spills soar

Water regulator to be scrapped as sewage spills soar

Telegraph4 days ago
While it is understood that ministers have not yet received the final report, which will be published on Monday, Sir Jon's interim report last month criticised 'deep-rooted, systemic' problems across the water industry, laying the blame at the door of both companies and regulators.
Ofwat has been criticised for its part in failing to prevent sewage spills and then allowing water companies to put up bills by almost £10 a month on average to fund improvements in environmental standards.
The regulator has also been criticised for failing to hold Thames Water to account before it slipped into crisis.
Thames Water nationalisation
Britain's largest water company – Thames Water, which is saddled with debt – faces the prospect of government control, with its boss warning this week that it will take at least a decade to turn the company around.
Environment Agency figures showed a sharp jump in pollution incidents in England, with Thames Water, Southern Water and Yorkshire Water the worst offenders.
Ofwat declined to comment, while a government spokesman said: 'We are not going to comment on speculation'.
Mark Lloyd, chief executive of the Rivers Trust, which represents trusts across the country, welcomed the proposed overhaul.
He said: 'The problem for Government is clear: economic and environmental regulation of the water industry has been very muddled since privatisation and is the root cause of many of the issues with the sector.
'Greater clarity, consistency, certainty and accountability of regulation are urgently needed for water companies to improve their performance and to attract investment. They therefore face a choice between reforming the current regulatory framework to make it work better or creating a new, single regulator.'
Thames bondholders also welcomed proposals to scrap Ofwat, pointing to the regulator's failure to rein in Thames Water's debt binge.
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