A major review of England and Wales’ water regulation has called for a sweeping overhaul of the current system, proposing the replacement of existing regulators with single, integrated bodies for each nation.
The Independent Water Commission, led by Sir Jon Cunliffe, set out 88 recommendations aimed at improving how the sector is run, following years of public dissatisfaction over pollution, rising bills, and executive pay.
The report described the current system as “fragmented and overlapping” and suggested abolishing Ofwat and the Drinking Water Inspectorate in England, along with removing key regulatory roles from the Environment Agency and Natural England.
Instead, a new, unified regulator would oversee the sector. In Wales, economic regulation would be integrated into Natural Resources Wales.
Other proposals include the creation of regional water authorities, stricter rules on company ownership and governance, and stronger consumer protections through an expanded ombudsman role for the Consumer Council for Water.
The report also recommends improving environmental oversight and introducing more digital monitoring of wastewater discharges.
The Government said it supports the findings and is considering new legislation to implement the changes. Water minister Emma Hardy described trust in the industry as “the lowest ever level” and said the system needs urgent reform to protect consumers and the environment.
In a speech, environment minister Steve Reed announced that the government will abolish Ofwat, and bring water functions from four different regulators into “a single powerful regulator” responsible for the entire sector.
He admitted that it was “clear the water industry is broken” and that “water companies have been allowed to profit at the expense of the British people when they should have been investing to fix our broken water pipes. A broken regulatory system let them get away with this."
Reed said there are four other recommendations from the report that the government will accept immediately, and he would outline these in Parliament today.