Water Bills Expected to Rise 30% as UK Plans To Abolish Ofwat Regulator

Water bills in England and Wales are projected to increase by 30% over the next five years due to years of underinvestment and the need for significant infrastructure upgrades, according to a government-commissioned review led by Sir Jon Cunliffe. The review calls for the abolition of the current regulator, Ofwat, along with the Drinking Water Inspectorate and some powers of the Environment Agency and Natural England, citing a fragmented and overlapping regulatory system. In their place, a single, powerful regulator will be established to oversee the entire water sector and ensure fair billing, effective regulation, and prioritize the public interest. The government plans to create nine local water authorities to tailor projects to community needs, aiming to restore public trust after public outrage over sewage discharges, rising bills, and executive pay. Environment Secretary Steve Reed described Ofwat as failing and announced the regulatory overhaul as the start of a 'water revolution' to clean up pollution and improve services. The reforms reflect a comprehensive shake-up not seen since the sector's privatisation, with an emphasis on protecting customers, investors, and the environment.