The UK is launching a major water industry reset, abolishing Ofwat and merging regulatory powers to tackle sewage spills and financial failures. Environment Secretary Steve Reed announced the changes following a damning review of the sector.
The government will replace Ofwat, the Drinking Water Inspectorate, and parts of the Environment Agency with a single, stronger regulator. This water industry reset aims to end years of underinvestment and poor oversight.
Sir Jon Cunliffe, who led the review, compared today’s crisis to the 1858 “Great Stink” that forced London to build its sewer system. He criticized Ofwat’s “desk-based” approach and adversarial relationship with water companies.
Thames Water, drowning in £20bn debt, highlights the sector’s troubles. The new regulator will have powers to take control of failing firms, preventing collapses like Thames’ potential special administration.
Emma Hardy, Water Minister, confirmed plans to fast-track five recommendations. A Water Bill next year will enact most of the review’s 88 proposals, including:
- A consumer ombudsman with legal compensation powers
- Stricter pollution controls for “forever chemicals” and microplastics
- Smarter billing via mandatory smart meters
The review rejected nationalization but urged consistent infrastructure spending to avoid bill spikes. Welsh Water’s not-for-profit model was noted as an alternative.
Critics like River Action’s James Wallace called the report a missed chance to end privatization’s “corrupted system.” GMB’s Gary Carter slammed water bosses for getting rich while “infrastructure crumbles.”
The water industry reset begins this summer, with full details expected by 2026. As Feargal Sharkey demands resignations over sewage failures, the government bets on a unified regulator to clean up the mess—literally and financially.
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