Water corporations face largest overhaul in a technology as new regulator unveiled

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Your help makes all of the distinction. Learn extra Water corporations can be compelled to conduct obligatory "MOTs" on their infrastructure as a part of a sweeping authorities overhaul designed to stop main failures.

Ministers are set to unveil these vital reforms in Parliament, which is able to see the present business regulator, Ofwat, abolished. Its obligations, alongside these of three different overlapping oversight our bodies, can be consolidated right into a single, highly effective new watchdog.

The forthcoming Water White Paper, scheduled for publication on Tuesday morning, will define the intensive powers granted to this new entity, prioritising failure prevention and strengthening accountability throughout the sector. Below the proposals, corporations can be required to carry out proactive well being checks on essential infrastructure, resembling crumbling pipes, pumps, and sewage therapy works, to determine and rectify issues earlier than they escalate.

The hope is that dangers resembling South East Water’s pipes bursting in chilly climate, which lately left hundreds of properties with out provide, are recognized upfront.

<img src="https://static.independent.co.uk/2026/01/19/22/0e705c64ac18acd306e71e7dd2423d91Y29udGVudHNlYXJjaGFwaSwxNzY4OTExMzA2-2.82985290.jpg" srcset="https://static.independent.co.uk/2026/01/19/22/0e705c64ac18acd306e71e7dd2423d91Y29udGVudHNlYXJjaGFwaSwxNzY4OTExMzA2-2.82985290.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2026/01/19/22/0e705c64ac18acd306e71e7dd2423d91Y29udGVudHNlYXJjaGFwaSwxNzY4OTExMzA2-2.82985290.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Environment, Food and Rural Affairs Secretary Emma Reynolds (Andrew Matthews/PA)" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> open picture in gallery

Surroundings, Meals and Rural Affairs Secretary Emma Reynolds (Andrew Matthews/PA) A chief engineer may also sit inside the brand new water regulator for the primary time in twenty years to carry again hands-on checks of infrastructure, in order that companies “should not marking their very own homework”.

Ofwat will unlikely be formally axed earlier than 2027, and the method to determine the brand new regulator can be complicated – that means it's unclear when it should begin working.

However the Authorities will say on Tuesday that it's going to set out a transition path within the coming months, and a brand new water reform invoice to carry ahead the laws wanted for the system to take impact.

Surroundings Secretary Emma Reynolds mentioned: “These are once-in-a-generation reforms for our water system – powerful oversight, actual accountability, and no extra excuses.

“Water corporations can have nowhere to cover from poor efficiency, prospects will get the service they deserve, and traders will see a system constructed for the longer term.

“This builds on the powerful motion we’ve already delivered, from report funding to banning unfair bonuses.”

Different measures within the Water White Paper will embrace the organising of devoted groups for every firm.

This can exchange the present “one-size-fits-all” method, with the purpose of offering the brand new regulator with a greater understanding of how every agency operates.

And the place their efficiency falls quick, the regulator will be capable to put tailor-made “efficiency enchancment regimes” in place, which suggests it could act faster to repair failures.

Elsewhere, the paper outlines new “no-notice” powers for the watchdog to examine water companies’ safety and emergency preparedness for occasions resembling assaults on infrastructure or contingency plans for provide points.

Clear strains of accountability for senior executives may also be outlined within the paper in measures likened to these seen within the monetary sector.

The deliberate adjustments come as a part of the Authorities’s response to public fury over rising payments, sewage air pollution and huge bonuses for bosses.

At the moment, Ofwat oversees how a lot water corporations in England and Wales can cost for providers; the Ingesting Water Inspectorate ensures that public water provides are secure; whereas the Surroundings Company and Pure England have regulatory features to watch companies’ influence on nature.

The regulators have confronted intense criticism for overseeing corporations throughout years once they paid out to shareholders and accrued massive money owed, whereas ageing infrastructure crumbled and sewage spills skyrocketed.

Philip Duffy, chief government of the Surroundings Company, referred to as the Water White Paper “a key milestone in turning round our water system”.

“Through the transition to the brand new regulator, our priorities stay unchanged,” he mentioned.

“We're centered on delivering our key providers – finishing up 10,000 inspections of water firm belongings this yr and dealing with our associate regulators, planners, water corporations, farmers and environmental organisations to guard and improve our water setting.”

Chris Walters, Ofwat interim chief government, mentioned: “The creation of a brand new water regulator for England will carry a renewed focus, enhance the sector for purchasers, traders and the setting, and rebuild belief.

“Within the meantime, our work continues.

“We're already working carefully with (the Surroundings Division) and our associate regulators because the Authorities develops the brand new physique, guaranteeing the sector strikes in the direction of a extra built-in and resilient future.”

Tim Farron, setting spokesperson for the Liberal Democrats, mentioned the White Paper “doesn't go far sufficient to ensure the elemental regulatory reform that was promised”.

“We should fully overhaul how water corporations run,” he mentioned.

“Liberal Democrats are calling for a brand new possession mannequin with water corporations mutually owned by prospects and professionally managed.”

James Wallace, chief government of River Motion, mentioned most of the measures introduced are “welcome steps”, however warned that “main gaps stay” in areas resembling triggers for particular administration, a dedication to restructure firm funding and possession and extra ambition to deal with agricultural air pollution.

“The publication of the Water White Paper indicators the Authorities recognises the dimensions of the freshwater emergency, however lacks the urgency and daring reform to deal with it,” he mentioned.

A spokesperson for Water UK, which represents the business, welcomed the White Paper however mentioned the main target “should now shift from analysis to supply”.

“Our nation is not going to have the setting it desires or the financial progress it wants till a brand new water regulator is established,” they mentioned.

“We can't afford for any extra long-term selections to be taken by a system everybody is aware of has failed.”

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Water corporations face largest overhaul in a technology as new regulator unveiled

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