EditorLandmark water review recommends overhaul of Welsh regulation
A major review of the UK water sector has recommended sweeping changes to how water is regulated in Wales, including the creation of a single integrated regulator and a national water planning authority.
The Independent Water Commission, chaired by former Bank of England deputy governor Sir Jon Cunliffe, published its final report this week, describing the current system as “fragmented and overlapping”. It sets out 88 recommendations aimed at restoring public trust, improving environmental outcomes, and ensuring long-term investment in water infrastructure.
In Wales, the report proposes merging Ofwat’s economic responsibilities into Natural Resources Wales (NRW) — a move intended to simplify oversight and give regulators a “whole-firm” view of water companies. It also calls for a 25-year National Water Strategy, with statutory milestones and public consultation, to guide future decisions.
The proposals come amid growing scrutiny of Welsh Water, which is under pressure following a surge in sewage pollution incidents. As previously reported by Swansea Bay News, the company recorded over 105,000 sewage spills in 2023, the highest in a decade. Environmental groups and opposition parties have called for tougher enforcement and greater transparency.
Other recommendations from the Commission include:
- A Water Ombudsman to strengthen consumer protections
- A national social tariff to support low-income households
- New powers to block water company ownership changes
- Stronger regulation of abstraction, sludge, and drinking water standards
- Compulsory water metering and improved monitoring of pollution
The report has sparked political debate. Welsh Conservative MS Andrew RT Davies warned against expanding NRW’s remit, calling it a “failed environmental regulator” and arguing it should be replaced entirely.
The proposed abolition of Ofwat has been welcomed by the Welsh Liberal Democrats, who say the move reflects years of campaigning to strengthen water regulation and tackle sewage pollution.
Swansea councillor and Senedd candidate for Gŵyr Abertawe, Cllr Sam Bennett, described the recommendation as a “major step forward” in restoring public trust, but cautioned that without urgent action, the reforms risk falling short.
“This is a big win for the Liberal Democrats, who have led the campaign against the sewage scandal for years,” said Bennett. “But countless Welsh rivers are still being poisoned by raw sewage. Our communities deserve clean water, strong regulation and environmental justice — not more empty promises.”
The party has long criticised water companies for prioritising profit over public health and the environment, pointing to rivers like the Tawe, which ranks among the most sewage-polluted in the UK. They’ve also raised concerns about whether Natural Resources Wales, which would take on expanded powers under the new model, has the capacity to deliver — citing over a decade of budget cuts and staffing pressures.
The Welsh Liberal Democrats say the reforms must be backed by real investment in infrastructure and stronger enforcement, particularly in Wales, where the devolved government holds significant powers over the sector.
Environment Secretary Steve Reed has signalled support for reform, describing Ofwat as “clearly failing” and pledging to halve sewage pollution in England’s rivers by 2030.
