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Water companies will be required to carry out “MOTs” on infrastructure to prevent major failures under plans by the new industry regulator. government Already said.
Ministers will unveil a series of reforms parliament As they move forward with major regulatory reforms, this will lead to Fear The current system of overlapping regulation by four different agencies was abolished and merged into one regulatory agency.
A water white paper due to be published on Tuesday morning will outline the powers of the new regulator, which is designed to prioritize preventing failures and increase accountability.
Under the proposals, water companies would be required to conduct health checks on their infrastructure to proactively detect broken pipes, pumps or problems before wastewater treatment plants fail.
The hope is that risks such as South East Water pipes bursting during cold weather, which recently left thousands of homes without water, can be detected in advance.
The chief engineer will also sit inside a new water regulator for the first time in two decades, bringing back physical inspections of the infrastructure so businesses “don’t flag their own operations”.
Ofwat is unlikely to be formally scrapped before 2027, and the process of setting up a new regulator will be complex – meaning it’s unclear when it will start operating.
But the government will say on Tuesday it will set out a transition path in the coming months and develop a new water reform bill to advance the legislation needed for the system to come into effect.
environment Secretary of State Emma Reynolds said: “These are once-in-a-generation reforms for our water systems – tough oversight, real accountability and no more excuses.
“Water companies will have nowhere to hide, customers will get the service they deserve and investors will see a system built for the future.
“This builds on the tough action we’ve already taken, from record investment to banning unfair bonuses.”
Other measures in the water white paper will include establishing dedicated teams for each company.
This will replace the current “one size fits all” approach and is designed to give the new regulator a better understanding of how each company operates.
When their performance falls short, the regulator will be able to put in place a tailored “performance improvement regime”, meaning it can act more quickly to fix the problem.
Elsewhere, the document outlines the regulator’s new “no notice” powers to inspect water companies’ security and emergency preparedness for events such as infrastructure attacks or contingency plans for supply issues.
Clear accountability for senior managers will also be outlined in the document, in measures similar to those in the financial sector.
The planned reforms are part of the government’s response to public anger over rising bills, polluted sewage and huge bonuses for bosses.
Currently, Ofwat regulates how much water companies in England and Wales can charge for their services; the Drinking Water Inspectorate ensures public water supplies are safe; and the Environment Agency and Nature England have regulatory functions to monitor companies’ impact on nature.
Regulators have faced harsh criticism for years for overseeing companies that racked up massive debts by paying huge debts to shareholders while aging infrastructure crumbled and sewage leaks surged.
Philip Duffy, chief executive of the Environment Agency, called the Water White Paper “an important milestone in turning around our water system”.
“Our priorities remain unchanged during the transition to the new regulator,” he said.
“We are focused on delivering critical services – carrying out 10,000 inspections of water company assets this year and working with our partner regulators, planners, water companies, farmers and environmental groups to protect and enhance our water environment.”
Chris Walters, interim chief executive of Ofwat, said: “A new water regulator for England will bring a new focus, improve the industry for customers, investors and the environment, and rebuild trust.
“In the meantime, our work continues.
“As the government establishes the new agency, we are already working closely with the (Department for the Environment) and our partner regulators to ensure the industry moves towards a more integrated and resilient future.”
Team FallonA Lib Dem environment spokesman said the white paper “does not go far enough to guarantee the fundamental regulatory reforms promised”.
“We have to revolutionize the way water companies operate,” he said.
“The Lib Dems are calling for a new ownership model where water companies are jointly owned by customers and professionally managed.”
Rivers Action chief executive James Wallace said many of the measures announced were “welcome steps” but warned that “significant gaps remain” in areas such as triggers for special administration, commitments to restructure company investment and ownership and greater ambition to tackle agricultural pollution.
“The release of the Water White Paper shows the government recognizes the scale of the freshwater emergency but lacks the urgency and bold reforms to tackle it,” he said.
A spokesman for British Water, which represents the industry, welcomed the white paper but said the focus “must now shift from diagnosis to delivery”.
“Until a new water regulator is established, our country will not have the environment it needs or the economic growth it needs,” they said.
“We can no longer allow any long-term decisions to be made by a system that we all know is failing.”