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The review was led by Sir Jon Cunliffe, former deputy governor of the Bank of England.(Image: PA)<\/p>\nA much-anticipated report comes amid widespread public anger over pollution, bills and bosses\u2019 bonusesThe review was led by Sir Jon Cunliffe, former deputy governor of the Bank of England.(Image: PA)<\/p>\n
The system for regulating water companies in England and Wales should be overhauled and replaced with one single body, a landmark review of the sector has advised. The much-anticipated final report from the Independent Water Commission, led by former Bank of England deputy governor Sir Jon Cunliffe, outlined 88 recommendations to the UK and Welsh governments to turn around the ailing industry.<\/p>\n
The government-commissioned review was tasked by the UK and Welsh governments to carry out the largest review of the sector since privatisation.<\/p>\n
It came in the face of widespread public anger over pollution, bills and bosses\u2019 bonuses although ministers ruled out nationalising water companies.<\/p>\n
The report, published on Monday morning, recommended abolishing Ofwat, which oversees how much water companies in England and Wales can charge for services, as well as the Drinking Water Inspectorate (DWI), which ensures that public water supplies are safe. <\/strong>For our free daily briefing on the biggest issues facing the nation, sign up to the Wales Matters newsletter here<\/a><\/strong><\/p>\n It also advised removing the regulatory roles of the Environment Agency and Natural England, which monitor the sector\u2019s impact on nature, such as companies illegally dumping sewage into waterways.<\/p>\n Instead, the review said a single integrated water regulator in England and a single water regulator in Wales should be established.<\/p>\n The current system of regulation has faced intense criticism for overseeing water companies during the years they paid out shareholders and accrued large debts while ageing infrastructure crumbled and sewage spills skyrocketed.<\/p>\n Other recommendations from the commission include stronger consumer advocacy, nine new regional water authorities to deliver on local priorities, significant improvements to environmental regulation and tighter oversight of company ownership and government.<\/p>\n It comes after nearly nine months of the commission analysing, researching and engaging with more than 50,000 responses to its call for evidence.<\/p>\n In the review, it has covered how the system is regulated, how to manage the competing demands on water, how water companies are governed and how critical water infrastructure is kept resilient into the future.<\/p>\n Sir Jon said: \u201cRestoring trust has been central to our work. Trust that bills are fair, that regulation is effective, that water companies will act in the public interest and that investors can get a fair return.<\/p>\n \u201cOur recommendations to achieve this are significant. They include the management of the whole water system, regulation of the water industry, the governance and financial resilience of water companies and a stronger voice for local communities and water customers.<\/p>\n \u201cIn this report I have considered what is best for the long-term future of water.<\/p>\n \u201cThis is a complex sector with a highly integrated system, responsible for the second-largest infrastructure programme in the UK.<\/p>\n \u201cResetting this sector and restoring pride in the future of our waterways matters to us all.<\/p>\n \u201cIn countless conversations in the last nine months I have been struck by the urgent need and passion for change.<\/p>\n \u201cDoing this will require hard work, strong leadership and sustained commitment. But it can and must be done.\u201d<\/p>\n The report also shares recommendations on implementation, including which reforms can be delivered in the short-term and which require new primary legislation.<\/p>\n In a speech responding to Sir Jon\u2019s report later on Monday, Environment Secretary Steve Reed is set to welcome the commission\u2019s recommendations to ensure \u201cthe failures of the past can never happen again\u201d.<\/p>\n He is also widely reported to be preparing to abolish Ofwat but is unlikely to commit to expanding social tariffs that could help households struggling with bills at the cost of higher charges for wealthier families.<\/p>\n The Environment Secretary will also pledge to setting up the creation of a new, legally binding water ombudsman, expanding the role of the voluntary Consumer Council for Water and bringing the sector into line with other utilities.<\/p>\n And prior to Monday\u2019s announcement, Mr Reed committed to halving sewage pollution in England\u2019s rivers by 2030 thanks to a \u00a3104 billion investment from the sector in upgrading infrastructure.<\/p>\n Both the Conservatives and the Liberal Democrats<\/a> have agreed that water regulation needs to change.<\/p>\n Lib Dem leader Sir Ed Davey called for the creation of a Clean Water Authority that could \u201chold these water companies to account\u201d and \u201cfine them when they fail\u201d.<\/p>\n