How to fix the water sector? Public asked for ideas as bills soar
Getty ImagesEnvironment Minister Steve Reed said the water sector in England and Wales is “deeply in need of repairs”.
The public, environmental groups and investors were asked about their views on how institutions established by the UK government changed the water sector.
The head of the new Independent Commission will invite ideas on how to repair the troubled water industry in England and Wales.
Former Bank of England Deputy Governor Sir Jon Cunliffe will launch evidence in Manchester on Thursday morning.
The committee is looking for ideas on reforms due to massive sewage spills and soaring bills.
Reed ruled out nationalization, saying it would cost up to £100 billion, while waterways would continue to be contaminated while not selecting a private ownership structure.
Instead, the government wants private investment to upgrade sewer systems and reservoirs.
To this end, Ofwat’s regulators have allowed the water industry to raise bills, which will From April, the average annual increase of £123 per year.
In 2023, Water Company had 3.6 million hours of wastewater overflow in England’s lakes, rivers and oceans, more than double the previous year.
Reid said there was a “serious” and “interlocking concern” with industries that needed “ambitious changes” and acknowledged that “trust in the system” had “collapsed on all sides.”
“Companies, regulatory gaps, policy instability, and historical decisions and poor performance have made an increasingly complex system no longer work well for anyone,” he said.
But he said these issues are not an “inevitable” consequence of privatization.
The government has formed an Independent Water Commission, pledging the biggest turmoil in the sector since its privatization 35 years ago.
Sir Jon is expected to recognize the general dissatisfaction of multiple failures and will seek submissions from regulators, investors, industry leaders and the public about potential reforms.
He will acknowledge tensions between different regulators, climate and population growth on the system and make the industry attractive to private investors.
His review comes as six companies are appealing Ofwat’s decision to limit bill increases over the next five years.
The committee’s report is expected to not affect the process in June.
To make companies more responsible, the government has proposed a law that gives regulators the right to ban water company boss bonuses.
Additionally, executives who fail to cooperate or obstruct investigators may face up to two years in prison.
