The water sector in England and Wales is failing and needs stronger regulation to better protect billpayers and the environment, according to the interim findings of a landmark review.
The independent Water Commission, led by former Bank of England deputy governor Sir Jon Cunliffe, said on Tuesday that public trust had been shaken by “pollution, financial difficulties, mismanagement [and] infrastructure failures”.
The review was set up by the government in October amid growing public concern about sewage spills and rising bills.
In launching the review, the government had ruled out nationalising the sector – arguing this would be too expensive and would not necessarily lead to improvements.
“There is no simple, single change, no matter how radical, that will deliver the fundamental reset that is needed for the water sector,” Sir Jon said.
“We have heard of deep-rooted, systemic and interlocking failures over the years – failure in government’s strategy and planning for the future, failure in regulation to protect both the billpayer and the environment and failure by some water companies and their owners to act in the public, as well as their private, interest.”
In response to Sir Jon’s findings, Environment Secretary Steve Reed described the water system as “broken”, adding that the government would respond to the commission in full.
At just over 100 pages long, the Water Commission’s interim findings are a precursor to the main report, which is expected be published later this summer.
It considered more than 50,000 responses submitted across the water sector, from the public, environmental groups, regulators and water companies themselves.
“What we heard was clear: the current system is not delivering what people expect and need,” Sir Jon said in a forward to the report.