Waterways in England and Wales have been plagued by pollution for years (Picture: Getty Images)
A major 465-page report has called for dramatic reform of the beleagured water sector in England and Wales and the wholesale scrapping of its regulator.
The Independent Water Commission, pulled together by ex-banker Sir Jon Cunliffe, sets out 88 recommendations to get the industry back on its feet after years of controversy over bills and sewage.
But campaigners including one-time Undertones frontman Feargal Sharkey have said they are sceptical of whether the report can make a difference.
Sir Jon’s report covers a wide range of topics including infrastructure, water company governance, impact on consumers, and the environment.
He writes: ‘Throughout my career, I have encountered many complex and important public policy issues but securing the future for water has, perhaps, been the most important of them all.
Sign up for all of the latest stories
Start your day informed with Metro’s News Updates newsletter or get Breaking News alerts the moment it happens.
‘While it will not happen overnight, I am convinced that if the major changes recommended in this report are adopted and pursued with sustained commitment, we can restore trust and have a future for water that is desired on all sides.’
End of the road for Ofwat
In an appearance on Laura Kuenssberg’s BBC show yesterday, Environment Secretary Steve Reed would not confirm Ofwat was destined for the scrap heap, though he said it was ‘clearly failing’.
It now looks all but certain the regulator, which oversees the water sector in England and Wales, will be abolished.
Sir Jon suggests in his report that Ofwat in England should be combined with the Drinking Water Inspectorate and the water environment sections of the Environment Agency and Natural England to form a new body.
In Wales, he proposes embedding the regulator within Natural Resources Wales.
Scotland and Northern Ireland both have nationalised water systems.
National social tariff scheme
On Sunday, Steve Reed told broadcasters water bills will be increasing for a while no matter what reforms are put in place.
He said households should expect to see a ‘small and steady’ rise in the cost of their water – but in his report, Sir Jon predicts bills are going to increase ‘markedly over the next five years’.
This is the result of a ‘huge step up of investment in the water sector’, he writes, which will need to remain high into the future to meet challenges including climate change and population growth.
Water companies across the country use social tariffs to reduce the cost for people who might struggle to afford their bills.
With Ofwat likely heading for the big regulator network in the sky, Sir Jon proposes a national scheme for social tariffs to simplify the system.
How are campaigners reacting to the report?
River Action heavily criticised Sir Jon Cunliffe’s report shortly after its publication this morning.
CEO James Wallace said, “This was a once-in-a-generation opportunity to reset a broken and corrupted system. Instead, the Commission blinked.
‘After three decades of privatisation, there is no evidence it can work. The report diagnoses symptoms but avoids the cure, appeasing the vulture capital markets and failing to propose alternative public-benefit investment, ownership and governance models that have been proven across Europe.
“We needed a credible plan to rescue Britain’s rivers, lakes, and seas – and a clear pathway to bring failing companies like Thames Water into public control. Instead, we’ve been handed vague policy nudges that leave the current failed privatised water company model intact.
‘When raw sewage is pouring into our waterways and reservoirs run dry, tinkering with regulatory half-measures simply isn’t enough to restore public trust.’
Environment Secretary puts job on the line
Environment Secretary Steve Reed promised yesterday to halve the sewage pollution in British rivers, lakes and seas by the end of this decade, and make them the cleanest since records began.
In an appearance on Laura Kuenssberg’s BBC show, he said he would step down from his role if he failed to achieve this target.
Environment Secretary Steve Reed has been highly critical of regulator Ofwat (Picture: Tayfun Salci/ZUMA Press Wire/Shutterstock)
Reed said: ‘Politicians come and say we’re going to do things. Of course our job should be on the line if we don’t.’
He is set to describe the water industry as ‘broken’ and welcome the recommendations of the report when they drop later today.
Get in touch with our news team by emailing us at webnews@metro.co.uk.
For more stories like this, check our news page.