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Failing water sector needs stronger regulation, review says
Failing water sector needs stronger regulation, review says

Yahoo

time03-06-2025

  • Business
  • Yahoo

Failing water sector needs stronger regulation, review says

The water sector in England and Wales is failing and needs stronger regulation to better protect billpayers and the environment, according to the interim findings of a landmark review. The independent Water Commission, led by former Bank of England deputy governor Sir Jon Cunliffe, said on Tuesday that public trust had been shaken by "pollution, financial difficulties, mismanagement [and] infrastructure failures". The review was set up by the government in October amid growing public concern about sewage spills and rising bills. In launching the review, the government had ruled out nationalising the sector - arguing this would be too expensive and would not necessarily lead to improvements. "There is no simple, single change, no matter how radical, that will deliver the fundamental reset that is needed for the water sector," Sir Jon said. "We have heard of deep-rooted, systemic and interlocking failures over the years – failure in government's strategy and planning for the future, failure in regulation to protect both the billpayer and the environment and failure by some water companies and their owners to act in the public, as well as their private, interest." In response to Sir Jon's findings, Environment Secretary Steve Reed described the water system as "broken", adding that the government would respond to the commission in full. At just over 100 pages long, the Water Commission's interim findings are a precursor to the main report, which is expected be published later this summer and give recommendations. It considered more than 50,000 responses submitted across the water sector, from the public, environmental groups, regulators and water companies themselves. "What we heard was clear: the current system is not delivering what people expect and need," Sir Jon said in a forward to the report. The government asked Sir Jon to focus on reforms to the water sector as a whole, rather than individual water companies. Pressure on the water sector is increasing due to climate change, population growth and other factors - but it is also suffering from decades of underinvestment. Increased monitoring has led to greater scrutiny into the amount of sewage being spilled into our rivers, lakes and seas. In total the spills from overflow pipes lasted more than 3.6 million hours in both 2023 and 2024. Releasing raw sewage into rivers and the sea can be legal if spills happen during wet weather, though it can still pose risks to people and the environment. But the BBC has previously uncovered evidence of likely spills during dry days as well. In April, bills rose by an average of 26% in England and Wales, as regulators approved water companies' plans for billions of pounds of investment. This is aimed at both upgrading water supplies and reducing the amount of sewage being spilled. Water firms admit sewage monitoring damaging public trust Drinking water shortage in decade without new reservoirs, minister says The water industry is in crisis. Can it be fixed?

Failing water sector needs stronger regulation, review says
Failing water sector needs stronger regulation, review says

BBC News

time03-06-2025

  • Business
  • BBC News

Failing water sector needs stronger regulation, review says

The water sector in England and Wales is failing and needs stronger regulation to better protect billpayers and the environment, according to the interim findings of a landmark independent Water Commission, led by former Bank of England deputy governor Sir Jon Cunliffe, said on Tuesday that public trust had been shaken by "pollution, financial difficulties, mismanagement [and] infrastructure failures".The review was set up by the government in October amid growing public concern about sewage spills and rising launching the review, the government had ruled out nationalising the sector - arguing this would be too expensive and would not necessarily lead to improvements. "There is no simple, single change, no matter how radical, that will deliver the fundamental reset that is needed for the water sector," Sir Jon said."We have heard of deep-rooted, systemic and interlocking failures over the years – failure in government's strategy and planning for the future, failure in regulation to protect both the billpayer and the environment and failure by some water companies and their owners to act in the public, as well as their private, interest."

People urged to share views on how to clean up water and rebuild trust
People urged to share views on how to clean up water and rebuild trust

The Independent

time27-02-2025

  • Business
  • The Independent

People urged to share views on how to clean up water and rebuild trust

The water industry's problems are not the 'inevitable consequence' of privatisation, the chairman of a commission set up to examine reforms of the sector has said. The Government-appointed Independent Water Commission is launching its call for evidence on Thursday, asking the public, environmental groups, investors and others their views on reform of the troubled sector. They are being urged to share their views on how to secure the 'significant' prize of cleaner waters, growth, and a stable, well-funded water sector for future generations. The launch comes amid ongoing public anger over the degraded and polluted state of the country's rivers, lakes and coasts, soaring water bills and privatised water companies' dividends, debt and executive bonuses. The commission is looking for views on the strategic management of water, the regulatory system, including economic, environmental and drinking water regulation, water company ownership models, and improving the resilience of assets from pipes to reservoirs, as well as supply chains. Former deputy governor of the Bank of England Sir Jon Cunliffe, who is chairing the commission, said its initial work since it was announced in October 2024 has highlighted a range of serious and often interlocking concerns. 'Ambitious changes will be needed to address these concerns and rebuild the trust in the system that has broken down on all sides – customers, environmental groups, investors and companies. 'The problems we see today have not emerged overnight. Nor, do I believe, are they the inevitable consequence of a privatise regulated company model,' he said. 'Rather, they have developed over time and due to factors including poor decisions and poor performance by companies, regulatory gaps, policy instability and a history of ad-hoc changes that have left an increasingly complex system that is no longer working well for anyone,' he added. 'Our task is to stand back from the current system and explore, with an open mind, potential changes.' He added: 'We should not forget that the prize here is significant – cleaner waters, growth and a stable, well-funded sector that can deliver essential, world-class services for future generations.' Environment Secretary Steve Reed said: 'Our waterways are polluted and our water system urgently needs fixing. 'Earlier this week our ground-breaking Water Act became law, with new powers to ban the payment of unfair bonuses for polluting water bosses and bring criminal charges against lawbreakers. 'Our plan for change will clean up our rivers, lakes and seas for good. 'I urge people to respond to this call for evidence on what needs to change to clean up our waterways and rebuild our broken water infrastructure.' Commenting on the launch of the Water Commission's call for evidence, the chairman of the Environment, Food and Rural Affairs Committee, Alistair Carmichael, whose committee is investigating the problems in the industry, said: 'There is huge public concern about the performance of water companies amidst repeated incidents of water outages, sewage pollution and outbreaks of contamination in domestic water supplies. 'I encourage the public to engage with the Water Commission's call for evidence and to use this opportunity to make their voices heard on the issues involved in cleaning up the unsatisfactory state of the country's water services.'

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