Ofwat ‘to be abolished and replaced with new water regulator’
Ofwat to be scrapped as ‘not fit for purpose’
- Ofwat, the UK's water regulator, is reportedly set to be abolished next week following a government review led by Sir Jon Cunliffe, which concluded it is not fit for purpose.
- The review recommends replacing Ofwat with a new regulator for the water industry, a decision that follows years of underinvestment and public dissatisfaction.
- The Environment Agency recently reported a 60 per cent increase in serious water pollution incidents in 2024, with Thames Water, Southern Water, and Yorkshire Water responsible for the majority.
- Labour MP Clive Lewis criticised the proposed abolition, arguing it would not resolve issues like river pollution or high bills, advocating instead for public ownership of water companies.
- The potential scrapping of Ofwat coincides with Thames Water, Britain's largest water firm, facing the prospect of nationalisation due to its significant debt and a recently failed bailout.