Wednesday 23rd October, 2024
The Welsh and Westminster Governments have announced a “wide-ranging” examination of the water industry in what they describe as “the largest review of the industry since privatisation.” This review will, of course, be seen as good news for anyone with an interest in UK rivers.
An independent commission has been established for the task, chaired by former Deputy Governor of the Bank of England Sir Jon Cunliffe with the overall objective to “strengthen regulation, boost investment and inform further reform of the water sector.”
The commission will report its findings and recommendations to Huw Irranca-Davies MS, Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs and to the Defra Secretary of State in June 2025. The two Governments will then decide on which proposals are to be adopted.
There appear to be three main thrusts to the Commission’s role: how to attract more investment to the water industry; how to ensure infrastructure allows for more housebuilding and how rivers can be in better health. However, it is essential that the third of these retains at least parity in the priority list. It could be argued that one of the reasons we are in the current dire situation with rivers is that Government policy in the past has always placed economics well in front of environment.
It is welcome that all regulators involved in water will be part of the review. There have been too many examples of apparent regulatory failure by Ofwat and Natural Resources Wales to escape full, independent scrutiny.
The entire extent of the water industry must be covered, especially its regulation. Therefore, we welcome that all regulators involved in water will be part of the review. There have been too many examples of apparent regulatory failure by Ofwat and Natural Resources Wales to escape full, independent scrutiny.
Afonydd Cymru has asked for the review to recognise the unique operating model for Welsh Water. It will need to look at whether the not-for-profit model is delivering against the original principles that were set out by Glas Cymru at the company’s formation. These were: lower water bills; improved environmental performance and financial stability. With water bills in Wales set to be among the highest in the UK and Welsh Water continuing to be among the worst for environmental performance, there will be plenty for the commission to look at.
We particularly welcome an independent review of the challenges of cross-border regulation and note with interest its catchment-based approach. However, the current review of Control of Agricultural Pollution regulations (CoAPR) in Wales is equally as important. That agriculture is at least as polluting a sector as the water
industry for most Welsh rivers must not be forgotten and the results of that review will be just as critical for river health.
In the meantime, the most important outcome that needs be achieved by this latest review is a financially stable water industry that sets realistic prices for the bill-payer and which delivers environmental improvement for rivers.