Latest news with #Thames Water
BBC News
9 hours ago
- Business
- BBC News
Water industry review: Will these proposals make any difference?
A review of the water industry has proposed the biggest reform of the sector in England and Wales since privatisation more than 30 years review's author, Sir Jon Cunliffe, has made 88 recommendations, which range from scrapping the current regulator Ofwat to stronger introducing stronger environmental reforms are deep and wide, and come at a time when there has been widespread criticism of the industry over leaking pipes and sewage these proposals are adopted in full it would be hard to see how things could not get better than where the sector is now - underinvested and widely derided. Excessive debt and inappropriate dividends that threaten some water companies' resilience – such as Thames Water – would be addressed by minimum capital levels and powers to block ownership changes if not in the company's long-term already know that water companies will invest more than £100bn in upgrading systems over the next five years - and that bills will rise sharply to pay for Jon says there are some "inescapable facts", including climate change, higher environmental standards, a growing population, and replacing ageing problems plaguing the industry come from not investing for a long period, meaning there needs to be a "massive" investment, in order to catch up, he amount companies can invest is a function of what they are allowed to charge and for the last 20 years, bills have risen by less than inflation - so have been getting cheaper in real is widely accepted that Ofwat prioritised keeping bills low over new investment. If consumers want a better water system, someone has to pay for what the Environment Secretary Steve Reed wants - and Cunliffe suggests - is a way of making sure bills do not have to spike so dramatically in future to catch up for years of underinvestment - as we are seeing is paying the price for that by being the report there are continual references to the telecoms regulator Ofcom - which is seen to have done a better job by maintaining a focus on continual investment in better infrastructure over while you can change the regulator, the reality is that higher future bills are the price for fixing the underinvestment of the a lot to digest in this - including compulsory metering and public health officials on water planning bodies. It will take time to take effect. But at least the government will be able to point to the Cunliffe review and insist it has set the wheels of change in motion.
The Guardian
10 hours ago
- Business
- The Guardian
New ‘powerful' water regulator to replace ‘failed' Ofwat in drive to ‘reset' sector
A new, 'powerful' water regulator should replace Ofwat, the Drinking Water Inspectorate and the Environment Agency to 'reset' a sector tarnished by scandals over sewage spills and financial mismanagement, a major review has recommended. The government is expected to adopt the recommendation for England and Wales made in the review it commissioned from Sir Jon Cunliffe, a former deputy governor of the Bank of England, which was released on Monday. Critics have said Ofwat has presided over a culture of underinvestment in infrastructure and financial mismanagement by water companies since its creation as the industry was privatised in 1989. Thames Water, the most troubling case for the government and the UK's largest water company, is loaded with £20bn in debt and struggling to stave off financial collapse into a special administration, a form of temporary nationalisation. Cunliffe's review suggested a new regulator, with powers to 'direct', or take control of, failing water firms. Speaking on BBC Radio 4's Today Programme, Cunliffe said Ofwat has 'failed' because 'for many years it didn't have the powers'. He added: 'To be blunt about it, it was directed by government to take a light touch to regulation.' The environment secretary, Steve Reed, also announced on Monday he would be taking up the recommendation in the report to create an ombudsman with legal powers to compensate consumers who are failed by the water industry, for example with taps running dry due to burst pipes and sewage leaks in gardens. The report found that there are just 58 members of staff charged with protecting the safety of the country's drinking water, because of civil service rules on headcount and pay. This means, the commission said, the Drinking Water Inspectorate in its current form may not be able to meet the 'challenges of the future'. The report also said the country is not protected from pollutants in water such as PFAs, or 'forever chemicals' and microplastic, and recommends legislative changes to address these and remove them from the water supply. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion It also recommends that bills are not raised dramatically, as they were in April and will be until the end of the decade, with the new regulator prioritising consistent investment in infrastructure so companies do not have to 'play catch up' and have to increase bills to urgently build or repair sewers and reservoirs.
BBC News
a day ago
- Climate
- BBC News
West of England headlines: 'Coach crash' and 'Syd Lawrence funeral'
Here's our weekly roundup of stories from across local websites in the West of have a daily round up as well. Make sure you look out for it on the website and the local section of the BBC News app. What have been the big stories in the West this week? Thames Water announced a hose pipe ban, following the recent scorching weather. Millions of people living in Gloucestershire, Oxfordshire, Berkshire and Wiltshire are being asked to limit their water usage from heat also brought large swarms of ladybirds to many parts of the country. A huge swarm of them were spotted on the seafront in Weston-super-Mare, covering cars and flying into people taking a trip to the coast. The bugs have since dispersed as temperatures stabilised later in the this week, some of the first aircraft began to arrive at RAF Fairford ahead of the Royal International Air Tattoo, which began on people living in Gloucestershire were left without water after a main burst on Wednesday. WWT Slimbridge and Slimbridge Primary School were forced to close because of the issue. The water supplier, Severn Trent, said it was a "complicated" fix.A major incident was declared in Somerset on Thursday after a coach carrying 60 to 70 school children back from a trip to Exmoor Zoo flipped and slipped down a bank. Police confirmed one child died in the crash on Cutcombe Hill. Prime Minister Sir Keir Starmer described the incident as "heartbreaking".And the funeral of former cricketer David "Syd" Lawrence MBE was held on Friday. The fast bowler, who played for Gloucestershire and England, died last month at the age of 61, just a year after being diagnosed with motor neurone disease. Top five local stories for the BBC in the West Something longer to read More than half of Britain's busiest airports have raised their drop-off parking fees. Bristol Airport is joint top of the list, charging motorists £7 to park for a matter of minutes near the terminals. Explore more with our daily roundups
Malay Mail
2 days ago
- Business
- Malay Mail
‘Extremely stressed': Thames Water warns of collapse without overhaul of UK water rules
Proposed measures to fix sector expected on Monday Indebted Thames Water fighting for survival Regulation overhaul could be proposed LONDON, July 19 — Britain is expected to set out measures to fix its broken water sector on Monday as Thames Water teeters on the brink of failure, saying it needs a 'reset' of regulation to have any chance of avoiding nationalisation. The country's biggest water company has been fighting for its survival for the last 18 months. If it fails the government would have to step in, adding billions of pounds to already stretched public finances. Britain commissioned a review last year into the privatised water industry in England and Wales, which needs huge investments to fix aging infrastructure and stem sewage spills into rivers and lakes that have angered the public. Former Bank of England deputy governor Jon Cunliffe, who is leading the review, has recommended overhauling regulation to lower investment risk, merging regulators to give companies clearer direction and new rules on river bathing standards. 'Water companies must be made more attractive to stable, long-term investors,' he said in his interim report in June. 'To attract such long-term investors, willing to make the substantial future investment we need, risks also need to be lower than they are presently. In large part, this means restoring confidence in the stability and predictability of the regulatory system.' Thames Water's creditors have offered it a rescue deal worth about 5 billion pounds (RM28.5 billion), and they, along with the beleaguered company, are in talks with Ofwat, the water industry's financial regulator. But in return they want a regulatory reset, which could mean flexibility on pollution targets, clemency on penalties and more time to deliver improvements. Thames Water Chief Executive Chris Weston told lawmakers on Tuesday that the company was 'extremely stressed and operating in very difficult circumstances' after it reported a 1.65 billion pound annual loss. Thames Water suffered a major setback in June when US private equity firm KKR – its preferred bidder – pulled out of an earlier rescue plan. KKR told lawmakers in a letter published on Tuesday that regulatory risk played a part in its decision, and it would not have been 'able to manage and meet the understandable expectations on the timing of improvements, risking falling short in the eyes of the public and stakeholders'. Thames Water, which has 16 million customers in southern England, forecasts it will face 1.4 billion pounds in pollution fines and penalties over the next five years. While the government wants to cut water pollution, it can ill afford a Thames Water bankruptcy that would add the company's 17 billion pound debt onto government books, at a time when the finance minister Rachel Reeves is already close to breaking her fiscal rules. The government has repeatedly said it is keeping a close eye on Thames Water. Environment minister Steve Reed said in June that his department had 'stepped up' preparations for its special administration regime, a form of temporary nationalisation. — Reuters
Zawya
3 days ago
- Business
- Zawya
UK to set out water reforms as Thames Water faces crisis
LONDON - Britain is expected to set out measures to fix its broken water sector on Monday as Thames Water teeters on the brink of failure, saying it needs a "reset" of regulation to have any chance of avoiding nationalisation. The country's biggest water company has been fighting for its survival for the last 18 months. If it fails the government would have to step in, adding billions of pounds to already stretched public finances. Britain commissioned a review last year into the privatised water industry in England and Wales, which needs huge investments to fix aging infrastructure and stem sewage spills into rivers and lakes that have angered the public. Former Bank of England deputy governor Jon Cunliffe, who is leading the review, has recommended overhauling regulation to lower investment risk, merging regulators to give companies clearer direction and new rules on river bathing standards. "Water companies must be made more attractive to stable, long-term investors," Cunliffe said in his interim report in June, adding that the sector required more predictable regulation. Launching the review last October, environment minister Steve Reed said there had been "very severe failures of regulation", raising the prospect that Ofwat, the water industry's financial regulator, could be scrapped. Thames Water's creditors have offered it a rescue deal worth about 5 billion pounds ($6.7 billion), and they, along with Thames Water, are in talks with Ofwat. But in return they want a regulatory reset, which could mean flexibility on pollution targets, clemency on penalties and more time to deliver improvements. Data released on Friday showed the scale of the sewage problem in England, with serious pollution incidents up 60% in 2024 compared to the previous year. Thames Water was responsible for 44% of the most serious incidents, the Environment Agency said, but all nine companies showed "consistently poor performance". Thames Water Chief Executive Chris Weston told lawmakers on Tuesday that the company was "extremely stressed and operating in very difficult circumstances" after it reported a 1.65 billion pound annual loss. Thames Water suffered a setback in June when U.S. private equity firm KKR - its preferred bidder - pulled out of an earlier rescue plan. KKR told lawmakers in a letter published on Tuesday that regulatory risk played a part in its decision, and it would not have been "able to manage and meet the understandable expectations on the timing of improvements, risking falling short in the eyes of the public and stakeholders". Thames Water, which has 16 million customers in southern England, forecasts it will face 1.4 billion pounds in pollution fines and penalties over the next five years. While the government wants to cut water pollution, it can ill afford a Thames Water bankruptcy that would add the company's 17 billion pound debt onto government books, at a time when finance minister Rachel Reeves is already close to breaking her fiscal rules. The government has repeatedly said it is keeping a close eye on Thames Water. Environment minister Steve Reed said in June that his department had "stepped up" preparations for its special administration regime, a form of temporary nationalisation. ($1 = 0.7466 pounds)
