David Black, the chief executive of Ofwat, has announced he will step down at the end of the month, following the government's decision to abolish the water regulator for England and Wales. His departure comes amid intense scrutiny of water companies and their regulators, with the sector facing widespread criticism over sewage spills and underinvestment.
Black, who has led Ofwat for four years, said he was privileged to have overseen a £104bn investment programme and a further £50bn in water resources. However, sources indicate that after the abolition announcement, Black felt he had to leave, despite the board's efforts to persuade him to stay. One water company chief executive suggested he was the wrong person to take the fall.
The government, led by Environment Secretary Steve Reed, is preparing the biggest overhaul of water regulation since privatisation in 1989. Ofwat has been a focal point for criticism, including over dividend payments and a 36% bill increase approved last year. The regulator's abolition follows a review by Sir Jon Cunliffe, which found the sector 'broken' and recommended merging powers from four regulators into one.
An interim chief executive will be appointed before Ofwat's abolition. The incoming boss will face urgent issues, including Thames Water's negotiations over fines and scrutiny of executive pay, such as the £1.3m in undisclosed payments to Yorkshire Water's boss. The Department for Environment, Food and Rural Affairs declined to comment.
