The Independent Water Commission – launched last October by the UK and Welsh governments – is seeking views in relation to the water sector in England and Wales. A Call for Evidence opened on February 27 and will close on April 23. The public, environment groups, investors and others are invited to share their views on future changes to the water sector. The findings will inform the Commission’s final recommendations to both UK and Welsh Governments this summer.
“The Commission’s initial work has highlighted a range of serious and often interlocking concerns. Ambitious changes will be needed to address these concerns and rebuild the trust in the system that has broken down on all sides – customers, environmental groups, investors and companies”, has said Sir Jon Cunliffe, Chair of the Independent Water Commission.
The outcome we need is an industry and regulatory system that is trusted by the public, by customers, and by investors to deliver world class, efficient services and the necessary quality of the water environment
The Commission wants to deliver a long-term approach to resetting the water sector, fostering collaboration between government, regulators, water companies, customers, investors and environmental groups.
The Commission has outlined six major areas where it is seeking views:
- Strategic management of water – Balancing competing pressures and setting effective national and regional management strategies.
- Overarching regulatory system – Addressing the complexity of legislation and the roles of four regulators (Ofwat, Environment Agency, Drinking Water Inspectorate, Natural Resources Wales).
- Economic regulation – Reviewing the five-yearly Price Review process, financial resilience, investor returns, and ensuring fair risk-reward balance.
- Environmental and drinking water regulation – Strengthening protections for public health, water resources, and environmental compliance.
- Water company ownership models – Evaluating the impact of public listing vs. private ownership on financial resilience.
- Asset health and supply chains – Enhancing infrastructure reliability, including pipes, treatment plants, reservoirs, and supply chain capacity.
David Black, Chief Executive of Ofwat, welcomed the review, emphasizing its importance in modernizing the sector: “We are clear that the water sector needs to change. The Cunliffe review is a once-in-a-generation opportunity to help rebuild public trust. We all want to see companies delivering improved service for customers and better environmental outcomes.”
Black highlighted the progress made since privatization, with £240 billion in new investment, a 40% reduction in leaks, and improved drinking water quality. However, he stressed that further reforms are needed: “Almost 35 years after Ofwat’s remit was first set out in legislation, regulation needs to be modernised, streamlined and clarified to deliver more effective oversight and enable us to drive change in the water sector.” And he urged all interested parties to participate: “We urge everyone interested in the water sector to participate in this review and seize the opportunity to build a water sector fit for the 21st century.”
The Call for Evidence consists of 73 questions covering various aspects of water sector regulation and operations. Responses can be submitted online, and participants do not need to answer all questions — only those relevant to them.
On February 27, Sir Jon spoke in Manchester on the occasion of the launch of the Call for Evidence. He recognized the progress made in the sector, stating, “The UK has world-leading drinking water. We can drink from our taps without a second thought, 365 days of the year. That is not the case in many other developed countries. The UK ranks among the best countries in the world for sanitation-related health.”
However, he also acknowledged the significant challenges ahead, saying, “But, those achievements notwithstanding, it would be very difficult to say now that we have a water sector, and regulation of water in general, in which the public have trust and with which the public is satisfied.”
Sir Jon further highlighted the systemic issues facing the sector, stating, "not all water companies are the same, but something has clearly gone wrong when the largest water company in England is struggling close to insolvency, when there are criminal enforcement cases in train against pretty much all water companies, when a number of companies’ debt is rated at below investment grade, and when over a third of water companies are formally challenging the economic regulator’s decisions."
Sir Jon concluded “the outcome we need is an industry and regulatory system that is trusted by the public, by customers, and by investors to deliver world class, efficient services and the necessary quality of the water environment and that is trusted to do that sustainably into the future. And that is not going to happen overnight, of course, but I hope the Commission can provide the platform for it to happen over time.”
With this Call for Evidence, the Independent Water Commission aims to take a fresh, objective look at the sector and explore transformative changes that will secure cleaner waters, a stable industry, and world-class services for future generations.
