Water regulation should be overhauled, review recommends
The much-anticipated final report from the Independent Water Commission, led by former Bank of England deputy governor Sir Jon Cunliffe, outlined 88 recommendations to the UK and Welsh governments to turn around the ailing industry.
The Government-commissioned team was tasked to carry out the largest review of the sector since privatisation in the face of widespread public anger over pollution, bills and bosses' bonuses, although ministers ruled out nationalising water companies.
Water minister Emma Hardy told broadcasters on Monday that the system is 'broken', but did not commit to how many of the 88 suggestions would be accepted by Whitehall.
The report, published on Monday morning, recommended far-reaching changes to the way the water system is regulated as it called the current landscape 'fragmented and overlapping'.
For England, proposals include abolishing Ofwat, which oversees how much water companies in England and Wales can charge for services, and the Drinking Water Inspectorate, which ensures that public water supplies are safe.
The report also advises removing the regulatory roles of the Environment Agency and Natural England, which monitor the sector's impact on nature, such as companies illegally dumping sewage into waterways.
Instead, a 'joined-up' and 'powerful' single integrated water regulator should be established, according to the recommendations.
In Wales, Ofwat's economic responsibilities would be integrated into Natural Resources Wales, the review said.
Ms Hardy told BBC Breakfast that ministers would be taking 'a proper look' at the paper 'all the way through the summer'.
Asked if all the recommendations would be made law, she told the programme: 'What we'll do is we'll have a proper look at it all the way through the summer and the intention is that we're going to introduce a White Paper to spell out exactly what we're going to do on water reform.'
Ms Hardy said that the Government would 'introduce a water Bill next year, which will change the law', but added: 'Exactly how many out of the 88 we're going to do or not going to do, then we'll work that out in the next few months.'
The current system has faced intense criticism for overseeing water companies during the years they paid out shareholders and accrued large debts while ageing infrastructure crumbled and sewage spills skyrocketed.
Author Sir Jon said the review has 'tried to attack the problem from all sides' but warned that bills are going to rise by 30% over the next five years.
'There are some inescapable facts here,' he said.
'The cost of producing water and dealing with our wastewater is going up.'
Sir Jon later told Times Radio that regulators have failed to work together to make the sector deliver and blamed the Government for not giving clear direction.
'It's the failure of Government to balance out all the different pressures on water,' he said, adding that firms 'need to perform better' and 'be funded to invest'.
The Government backed the commission's findings, with Ms Hardy saying consumers have been 'failed time and time again'.
Speaking on Times Radio, she said 'root-and-branch reform' is needed to fix the crisis and told listeners the Government is considering a piece of primary legislation to deliver many of the proposed changes.
Ms Hardy also described trust in the water industry as at 'the lowest ever level' and criticised executives for handing out pay rises and bonuses.
'Everyone knows the system is broken,' she said.
'And they give themselves huge pay rises.'
However, the minister also ruled out supporting Government intervention to cap pay in the private sector.
Ms Hardy said: 'I don't think as Government we should say what private companies should pay.
'But I will say – read the room. Look how angry and furious people are.'
Other key recommendations in the review include:
– Expanding the role of the voluntary Consumer Council for Water into an ombudsman to give stronger protection to customers and a clearer route to resolving complaints.
– Significant improvements to environmental regulation, including the process where companies collect and analyse wastewater discharges they make into waterways, by introducing more digitalisation, automation, third-party assurance and inspections.
– Tightening oversight of water company ownership and governance through measures such as new regulatory powers to block changes to water company ownership and 'minimum capital' requirements so that companies are less reliant on debt.
– Introducing legislative reforms to better manage public health risks in water, recognising the many people who swim, surf and enjoy other water-based activities.
– Fundamentally resetting economic regulation, including a new 'supervisory' approach that supports tailored decisions and earlier interventions in water company oversight.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Rhyl Journal
2 hours ago
- Rhyl Journal
Britain risks being ‘dumping ground' for forced labour goods
Existing rules are failing to prevent products flown from Xinjiang, where Beijing is accused of employing Uighur Muslim people against their will, ending up on UK shelves, according to a new report. In the 99-page document, MPs and peers on the influential Joint Committee on Human Rights (JCHR) called on ministers to impose import bans on goods linked to forced labour. Mandatory human rights due diligence for UK firms and penalties for flouting the requirements should also be introduced, the cross-party group said. This would establish a legal duty for businesses to manage any risk of human rights abuse in their operations, such as by requiring suppliers to fulfil certain conditions, rather than the existing 'voluntary' approach. Key to UK laws governing forced labour is the Modern Slavery Act 2015, but the committee warned a lack of 'enforceable legislation' is leaving loopholes in the system. 'The evidence we heard demonstrates that goods produced by forced labour are being sold in the UK,' the JCHR said. 'Cargo flights are permitted to bring goods directly from the capital of Xinjiang to the UK unhindered and media investigation has provided strong evidence that tomatoes produced under forced labour conditions are used in products sold in UK supermarkets.' Britain's approach to imports has fallen behind other key markets like the EU and the US, which have introduced bans on goods linked to forced labour, according to the report. 'The UK's lack of equivalent legislation puts the UK at risk of becoming a dumping ground for goods that cannot be sold elsewhere,' it said. It recommended the Government bring in a similar measure to establish who is responsible for preventing the import of such goods and what happens if goods are confiscated. This ban should make clear that no company that uses or allows state-imposed forced labour in its supply chains can import goods to the UK, the committee said. Concerns have also been raised over the UK's free trade deal with India, where human rights groups estimate more than 11 million people are living in modern slavery. Meanwhile, more than a million people are estimated to live in modern slavery in the US, according to the same data, compiled by the International Labour Organisation and Walk Free in partnership with the UN. The JCHR said the UK could learn from the EU's policy of using 'political clauses' in its deals to promote the bloc's values, as it continues negotiations with some Gulf states amid concerns about their human rights records. It urged the Government to make it an explicit policy to include provisions concerning forced labour in future trade agreements, and to avoid entering negotiations with countries participating in state-imposed forced labour. Sir Keir Starmer's Government has sought to balance a revival of relations with Beijing in its pursuit of growth with matters of national security amid concerns about Chinese interference in Britain and human rights concerns. China has denied accusations it is subjecting the Uighur minority to forced labour. Lord David Alton, chairman of the JCHR, said its inquiry had seen 'shocking evidence' of human rights abuses in a wide range of industries at the heart of UK trade. 'Most of all, we want to see strong leadership from the Government. It's intolerable in the 21st century that we profiteer on the broken backs of slave labour, from Uighur servitude in Xinjiang to child labour in the cobalt mines of the Congo, and elsewhere,' he said. 'The Government knows (the) nature of the problem and the challenge but meaningful action has been lacking.'
South Wales Argus
3 hours ago
- South Wales Argus
Keir Starmer 'must be living in cuckoo land' says reader
He says he is 'as proud as hell' of Labour's first year in office. He must be living in cuckoo land. Labour has trashed the economy, reneged on every election pledge, apart from his comment about Welsh Labour. He said the way Labour has run Wales is a blueprint for how they will run the UK. Well, Labour in Wales has spent 25 years running the country into the ground. Spending billions on worthless schemes and plans, just one example buying Cardiff Airport, spending expected to be by 2030, nearly £400million. Labour has patiently proved they cannot run the Welsh economy, so far, buying Cardiff Airport was an insane idea. Since 2013, over £180 million of taxpayers' money spent on it, with a current loss of £61million. If this was a private organisation, they would have gone into receivership. Labour's Senedd leaders since 2013 should hold their heads in shame. R Brafing, Wales
South Wales Argus
3 hours ago
- South Wales Argus
New £800 million fund launched to support projects in Wales
The fund, linked to onshore wind energy developments, is part of a £3 billion investment by Bute Energy in new energy park sites across the country. It aims to generate long-term social and economic benefits while supporting the Welsh Government's 2030 net zero targets. Catryn Newton, director of community investment and communications at Bute Energy, said: "With the guidance and expertise of the trustees, money from the new Community Benefit Fund will undoubtedly transform the places, spaces, experiences, and the lives of those nearby the new energy parks developed." The fund will be managed by an independently governed charity, with a board of trustees currently being recruited. Trustees will oversee the distribution of grants to communities located near the energy parks, with funding guided by local panels. The first site to benefit will be Twyn Hywel in Caerphilly. Ms Newton said: "The charity is seeking exceptional individuals to join the new board of trustees at this pivotal moment, as they will help shape and govern the bold new model of grant-making and social investment in Welsh communities." The fund will provide £7,500 per megawatt of a park's energy generation capacity, with funding allocated based on the number and size of turbines at each site. A quarter of the grant funding will be ring-fenced to address the cost of living crisis, potentially supporting new community-owned energy projects. Trustees will play a central role in ensuring the fund delivers 'systemic, place-based change'.
