Public invited to have say on water sector fit for the future
Source: gov.uk (2025-02-27)

Independent Water Commission explores fresh ideas on water sector reforms, both evolutionary and revolutionary.

The public, environment groups, investors and others are invited to share their views from today (27 February) on future changes to the water sector.

How customer bills are set, environmental regulation, the financial resilience of water companies and how to attract long-term investment in the sector are among the areas where the Commission is seeking views.

The wide-ranging Call for Evidence (https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.gov.uk%2Fgovernment%2Fcalls-for-evidence%2Findependent-commission-for-water-call-for-evidence&data=05%7C02%7Cjane.wharton%40defra.gov.uk%7C39b992e49b6b40e4ff5008dd5678a22a%7C770a245002274c6290c74e38537f1102%7C0%7C0%7C638761798291474322%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=RBi6fGqL9e7P1fImT%2BP7gO3S4SG%2Fy53TRR46yLPF9dI%3D&reserved=0) is open for views from all interested parties until 23 April. The Independent Water Commission will make its final recommendations to both UK and Welsh Governments this summer.

Sir Jon Cunliffe, Chair of the Independent Water Commission and Former Deputy Governor of the Bank of England, will give a speech in Manchester today where he will share his reflections since taking up the role.

Commenting ahead of the event, Sir Jon said:

The Commission’s initial work 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 Call for Evidence will play a key role in shaping the Commission’s thinking going forward and I welcome input from all those who want to contribute to our work.

There are six key areas where the Commission is seeking views. These are:

The strategic management of water. This seeks views on how to manage the many competing pressures and demands on the water system, and how strategic direction and management can be set at both national and regional levels.

The overarching regulatory system. This covers the volume and complexity of legislation in the water sector, and the overall functions and responsibilities of the four regulators (Ofwat, Environment Agency, Drinking Water Inspectorate, Natural Resources Wales).

Economic regulation. This seeks views on the five-yearly Price Review process and the weight placed upon industry-wide benchmarking. It also covers customer protections, financial resilience and investor returns. This includes how to attract the necessary finance for future investment, with a fair balance between risk and reward.

Environmental and drinking water regulation. This covers how regulation can better protect the environment, public health and the country’s finite water resources. It seeks views on how water companies are held to account for non-compliance.

Water company ownership models. This includes the impact of public listing versus private ownership and how to ensure financial resilience.

Asset health and supply chains. This seeks views on improving the resilience of water company infrastructure – its pipes, water treatment plants, reservoirs and pumping stations. It also covers the capacity and robustness of water industry supply chains.

Sir Jon continued:

The problems we see today have not emerged overnight. Nor, do I believe, are they the inevitable consequence of a privatised regulated company model.

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. Our task is to stand back from the current system and explore, with an open mind, potential changes.

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.

Sir Jon is speaking today (27 February) at Mayfield Depot in Manchester, with environmental groups, investors, regulators, industry leaders and government ministers among those present.

The site is in the city’s first new park in over 100 years and includes the River Medlock, which was restored to create new habitats for wildlife such as kingfishers and brown trout. It demonstrates integrated water management principles – local groups working together to improve water management.

The Independent Water Commission was announced by the UK and Welsh governments in October 2024 (https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.gov.uk%2Fgovernment%2Fnews%2Fgovernments-launch-largest-review-of-sector-since-privatisation&data=05%7C02%7Cjane.wharton%40defra.gov.uk%7C39b992e49b6b40e4ff5008dd5678a22a%7C770a245002274c6290c74e38537f1102%7C0%7C0%7C638761798291496144%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=wYQgNhjzpF0IbSGGEMBxkf%2BFxwNOvwQvboq2dGdUkxM%3D&reserved=0). It is operating independently of UK and Welsh Ministers.

It is supported by an advisory panel (https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.gov.uk%2Fgovernment%2Fnews%2Fexpert-advisory-group-appointed-by-independent-water-commission&data=05%7C02%7Cjane.wharton%40defra.gov.uk%7C39b992e49b6b40e4ff5008dd5678a22a%7C770a245002274c6290c74e38537f1102%7C0%7C0%7C638761798291510803%7CUnknown%7CTWFpbGZsb3d8eyJFbXB0eU1hcGkiOnRydWUsIlYiOiIwLjAuMDAwMCIsIlAiOiJXaW4zMiIsIkFOIjoiTWFpbCIsIldUIjoyfQ%3D%3D%7C0%7C%7C%7C&sdata=reqm1%2Bk7znqTJ3XsKr458wANDaM%2FfE8bPB8iTBP5GmU%3D&reserved=0), with leading voices from areas including the environment, public health and investment.

All responses to the Call for Evidence must be received by midnight on Wednesday 23 April 2025.