New Water Commission to establish feared environmental enforcer
- The water sector in England and Wales has faced regulatory challenges, particularly following Ofwat's price review in 2004.
- Evidence has emerged of widespread violations of wastewater regulations, undermining public confidence and highlighting enforcement failures.
- A newly established commission will focus on creating a feared environmental enforcement body to address these issues and improve the industry's performance.
In England and Wales, an independent commission into the water sector is being led by Sir Jon Cunliffe, following significant regulatory failures identified over the past two decades. The urgency for reform arose after Ofwat's price review in 2004, which marked a turning point that resulted in lax regulatory practices and allowed for widespread financial exploitation by private equity firms. This decline was exacerbated by evidence of rampant non-compliance with wastewater regulations, revealing the inadequacies in the enforcement responsibilities shared by Ofwat, the Environment Agency (EA), and the Drinking Water Inspectorate. Given these issues, the commission's priority will be to establish a robust environmental enforcement body that is authority and feared. Additionally, the commission must navigate the political landscape, having been directed to rule out nationalization of water companies despite past successes seen in Welsh Water. The purpose of reforms is to ensure long-term stability and investment in infrastructure while also addressing the pressing environmental crises, such as pollution and the management of natural resources, to restore trust in the system.