A PLAN to give powers to a new regulator overseeing water companies across the UK has been set out by the government.
Ministers have announced a “once in a generation” White Paper which will see new powers given to a national regulatory body, aimed at creating more thorough oversight and better accountability for water providers.
Among the plans is the proposal to install a chief engineer, who will be charged with ‘hands-on’ checks of water infrastructure–which the government says the current regulator, Ofwat, has failed to provide.
The new role will bring with it an ‘MOT-style’ approach for infrastructure–requiring health checks on pumps, pipes, and other installations–as well as ‘no ‘notice’ inspections.
This is intended to catch more problems with relevant infrastructure before they cause issues, and will be twinned with a new Performance Improvement Regime which allows the new regulator powers to fix failures.
Elsewhere in the plans are a roll-out of smart metres, aimed at helping households monitor water use, and efficiency labels for appliances.
The government estimates that this will save more than £125 million in the next ten years.
Dedicated supervisory teams for each water company will replace the current one-size-fits-all approach, giving the new single regulator a better understanding of how each company operates, and the ability to intervene before problems take hold.
A 2026 Transition Plan will set out the path to this new system, and a new water reform bill will bring forward the legislation needed enable the system to take effect.
The announcement follows a review led by Sir Jon Cunliffe, who last year made nearly 90 recommendations–including scrapping the current regulator Ofwat–as a result of the investigation into water providers.
It also follows the announcement of a £29m investment during last year’s autumn budget which would be formed from fines to water companies.
Environment Secretary Emma Reynolds said: “These are once-in-a-generation reforms for our water system – tough oversight, real accountability, and no more excuses.
“Water companies will have nowhere to hide from poor performance, customers will get the service they deserve, and investors will see a system built for the future.
“This builds on the tough action we’ve already delivered, from record investment to banning unfair bonuses.”
