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The Government has announced that Ofwat will be abolished and will b e replaced by one single water regulator responsible for the entire water system.
In a speech at Kingfisher Wharf, the Secretary of State for the Environment, Steve Reed pledged to strengthen regulation, clean up the country’s s rivers and protect the public from soaring water bills.
There are currently four separate regulators responsible for the water industry, a complex, tangled system of confusion. It is a merry-go-round of regulators blaming each other for breaking this country’s water system.
The creation of one powerful regulator aims to restore public faith and investor confidence in our water industry. The Government says that current fragmented approach of four separate regulators splits up economic, environmental and drinking water regulation. This complex web of regulators has led to contradictory and competing priorities. The proposals will be consulted on this autumn and form the basis of a new Water Reform Bill.
The Government says that Ofwat has failed customers, allowing water companies to mismanage billions of pounds of customer money while water companies paid out huge dividends and bonuses.
The Environment Secretary, Steve Reed said “Our water industry is broken. That is why this Government will fix our broken regulatory system so the failures of the past never happen again. The Government will abolish Ofwat. In the biggest overhaul of water regulation in a generation, we will bring water functions from four different regulators into one.
“A single, powerful regulator responsible for the entire water sector will stand firmly on the side of customers, investors and the environment and prevent the abuses of the past. It will provide the clarity and direction required for a strong partnership between Government, the sector and investors to attract billions of pounds of new investment.”
