A major review of water services across the UK has made 88 recommended changes – the biggest of which is abolishing the current regulatory body Ofwat.
The review was headed by Sir Jon Cunliffe as part of the Independent Water Commission on behalf of the Department for Environment, Food and Rural Affairs. The resulting 465-page-long report was published on July 21st.
What is Ofwat?
Ofwat is the name usually used to refer to the Water Services Regulation Authority. This organisation has been responsible for regulating the various clean and waste water companies across England and Wales since 1989.
Ofwat do not manage water supplies directly. Instead, they monitor the performance of private water companies and impose penalties and fines on those that fail to meet agreed standards.
Ofwat to be abolished
On the morning of Monday, 21st July, the Independent Water Commission published its report on the state of the UK water supply.
Among 88 recommendations for improvements, the most significant was that Ofwat be abolished and replaced with a singular regulatory body.
The Environment Secretary Steve Reed says the new regulator will ‘prevent abuses of the past’. However, many campaigners are critical that the new organisation will have many of the same staff, and that a nationalised water system, such as the one in Scotland, was not considered as an option.
Why is it being disbanded?
Water companies across England and Wales have come under heavy criticism over the last ten years from customers and campaign groups alike. Among complaints are the rising cost of bills, heavy wastage caused by inefficient and outdated infrastructure and the large amounts of sewage and wastewater being dumped into the rivers and the sea.
The last is a huge problem, with serious pollution incidents rising by 60% from 2023 to 2024. Wildlife organisations and surfers have been among the groups raising their concerns about the state of UK water.
Ofwat’s response to these issues has been issuing fines to water companies. In 2024 alone, clean and waste water suppliers were ordered to refund customers £160 million in the form of bill discounts.
However, these fines have not had the desired effect on water companies and their conduct. It is hoped that a new regulatory body will be able to enforce guidelines more strictly and that we will see an improvement in the conduct of water suppliers. However, campaigners for clean water are critical that the government is merely offering an ‘illusion of change’.
What does this mean for my water bills?
The changes to Ofwat will not have any direct effect on your water bills or on who is responsible for managing your water supply.
Water bills are expected to rise in the next five years – something that was discussed long before the results of this latest report were published.
However, the government has also emphasised the importance of protecting vulnerable households from sudden price rises. This includes proposing the idea of a lower-priced social water tariff for those struggling to pay their bills.
These plans have not been confirmed, as the changes to Ofwat have been. Instead, we will have to wait and see what changes to water billing are announced for the 2026/2027 billing year – and beyond.
