UK Government Launches Major Water Industry Review

In response to public outrage over sewage pollution and rising water bills, the UK and Welsh governments have launched the largest review of the water sector since its privatization, headed by former Bank of England deputy governor Sir Jon Cunliffe. This Independent Water Commission aims to address systemic issues, including the potential abolition of the regulator Ofwat, as well as to secure necessary infrastructure improvements. Current water companies are under scrutiny for proposed bill increases that could reach 40% by 2030, with some firms requesting even higher hikes to fund infrastructure upgrades. Environment Secretary Steve Reed emphasized the urgent need for reform to prevent future water shortages and restore the health of Britain's waterways. The commission will deliver its recommendations by mid-2024, paving the way for potential legislative changes to attract long-term investment in the sector. However, the government has ruled out nationalization, opting instead to seek private investment for necessary upgrades.