Independent Water Commission Proposes Radical Overhaul of UK Water Regulator

Strategic Insights -

The Independent Water Commission, chaired by Sir Jon Cunliffe, has published a report recommending significant reforms to the UK's water regulator, including the abolition of Ofwat and the Drinking Water Inspectorate, and the introduction of a single water regulator in England and Wales. The report calls for a more streamlined and effective regulatory system, with a stronger focus on protecting the public interest and ensuring fair treatment of water customers. Key recommendations include the establishment of nine regional water authorities in England, the introduction of a smart meter mandate, and the transformation of the Consumer Council for Water (CCW) into an Ombudsman for Water.

Key Takeaways:

  • The Independent Water Commission proposes abolishing Ofwat and the Drinking Water Inspectorate, replacing them with a single water regulator in England and Wales.
  • The new regulator would have greater powers to oversee company ownership, governance, and asset management.
  • The report recommends establishing nine regional water authorities in England and one national authority in Wales.
  • A smart meter mandate is to be introduced to improve water efficiency and reduce waste.
  • The CCW is to be transformed into an Ombudsman for Water, with a stronger focus on protecting water customers' interests.
  • Legislative changes are proposed to address emerging pollutants such as PFAS, micropollutants, and microplastics.
  • A new 25-year National Water Strategy is to be developed to provide a long-term framework for water management.

Statistics:

  • 88 final recommendations are made in the report.
  • 9 regional water authorities are proposed for England.
  • 1 national authority is proposed for Wales.
  • 25-year National Water Strategy is to be developed.
  • 100% of water companies are to be required to map and assess their assets.

Sources:

  • [Independent Water Commission report (2022)]
  • [Statement by the Independent Water Commission's chairman, Sir Jon Cunliffe]
  • [Ofwat and the Drinking Water Inspectorate]
  • [Consumer Council for Water (CCW)]