The UK government is preparing to dismantle Ofwat, the current water industry regulator, as part of a sweeping reform of the sector. Ministers are exploring the creation of a new regulatory body to oversee water companies, following mounting criticism of Ofwat's effectiveness.
Why the Change?
Sources close to Whitehall suggest the move comes after years of frustration with Ofwat's handling of issues such as leakage rates, sewage discharges, and executive pay in water firms. The new regulator is expected to have stronger enforcement powers and a clearer mandate to hold companies accountable.
Industry Reaction
Water companies have remained tight-lipped about the proposed changes, though industry insiders acknowledge that reform was inevitable. Consumer groups, however, have welcomed the news, hoping it will lead to better service and fairer pricing.
What Happens Next?
The transition period is likely to take at least 12 months, with legislation required to formally abolish Ofwat and establish its replacement. Experts warn that the process must be carefully managed to avoid disruption to water services across the country.
This shake-up represents the most significant change to water regulation in England and Wales since privatisation in 1989, potentially reshaping the industry for decades to come.
