Government to scrap Ofwat and raise water bills

The government are to scrap the water regulator Ofwat as it is has “failed” to introduce moves required to repair the UK’s antiquated industry.

A report by Sir Jon Cunliffe announced on Monday the scrapping of the water regulator, but this has been hit with criticism as his report avoids the cure needed to finally fix the UK’s broken system.

Sir Jon’s review did not mention renationalising water companies even though there has been a lot of demand for them to return back to public ownership.

The Environment Secretary Steve Reed has promised that “never again” will households have to be hit with a major hike to their water bills.

However, James Wallace CEO of River Action 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.”

The Environment Secretary they will introduce four different bodies who will form a “single powerful” regulator.

Reed has vowed the new water regulator will “stand firmly on the side of customers, investors and the environment,” and promised to cut sewage in half within five years.

The new regulator will oversee the required investment and maintenance needed so that “hard-working British families are never again hit by the shocking bill hikes we saw last year.”

Victoria Atkins MP, Shadow Secretary of State for Environment, Food and Rural Affairs, said, “We will study the Cunliffe Report into the water industry carefully.

“Labour have dithered and delayed over reform and only come up with a plan to raise water bills at a time where Labour’s economic management has taken a wrecking ball to family finances.

“Meanwhile, calls for a ‘social tariff’ and push for compulsory metering could drive bills even higher.”

An Ofwat spokesman said, “The Cunliffe Report sets out a new direction for the water sector.

“While we have been working hard to address problems in the water sector in recent years, this report sets out important findings for how economic regulation is delivered and we will develop and take this forward with government.

“In advance of the creation of the new body, we will continue to work hard within our powers to protect customers and the environment and to discharge our responsibilities under the current regulatory framework.

“We will also work collaboratively with all our stakeholders to ensure a smooth transition.”