WATER bills are set to soar by 30 per cent over the next five years, a damning review revealed as ministers confirmed the industry regulator will be abolished.
Environment Secretary Steve Reed confirmed Ofwat will be scrapped as part of an overhaul of a “broken” water regulation system that failed customers and the environment.
GettyEnvironment Secretary Steve Reed confirmed Ofwat will be scrapped[/caption]
GettyThe Environment Secretary vowed to halve sewage pollution by 2030 using £104 billion of investment[/caption]
He made the announcement in response to an independent review by Sir Jon Cunliffe commissioned by the Government to answer public fury over pollution in rivers, lakes and seas, soaring bills, shareholder payouts, and bosses’ bonuses.
Sir Jon said households are paying the price for years of underinvestment and warned “massive” upgrades are now needed.
He told the BBC there has been a “really huge” rise in bills and they are going to rise by another 30 per cent in real terms.
His report out today recommends scrapping Ofwat and replacing it with a single, “powerful” regulator to fix what he called a “fragmented and overlapping” system.
The former Bank of England bigwig slammed the existing mess of regulators – and said only a “joined-up” and “powerful” single body could fix it.
His long-awaited review said it was time to abolish Ofwat – which sets bills and oversees spending – and scrap the Drinking Water Inspectorate, as well as strip the Environment Agency and Natural England of powers.
Sir Jon warned: “Restoring trust has been central to our work. Trust that bills are fair, that regulation is effective, that water companies will act in the public interest.”
He added: “This is a complex sector… responsible for the second-largest infrastructure programme in the UK. Resetting this sector and restoring pride in the future of our waterways matters to us all.”
The 217-page report – ordered after public fury over sewage spills, soaring bills and sky-high exec bonuses – calls for a massive overhaul not seen since privatisation.
Environment Secretary Steve Reed piled in on Sunday, admitting: “Ofwat is clearly failing.”
Instead of several overlapping bodies, nine new local water authorities – eight in England, one in Wales – would deliver projects that match local needs and give communities a louder voice.
Sir Jon’s review said the shake-up must also bring tighter rules on bosses and owners, with better protection for customers and the environment.
The Sun says
MILLIONS would be forgiven for thinking that paying their water bills is like pouring money down the plughole.
Every year, the demand grows higher while the service provided by utility bosses sinks to a more nauseating level.
Prices rose by an average of 26 per cent this year but what did we get in return?
Britain’s rivers, lakes and beaches are awash with sewage, supplies have been interrupted by leaks in ageing water mains and garden hosepipe bans have been imposed.
Despite all this, there’s been a steady flow of cash into the pockets of water company bosses — with one given a pay rise that almost doubled his income to £1.4million.
Six out of ten water firms paid their bosses an average bonus of £180,000 last year — on top of their fat salaries.
Yet now we’re told we may have to dig deep to fund a clean-up of our waterways and invest in new infrastructure.
Don’t expect any great change soon, though.
Environment Secretary Steve Reed has promised only to halve current pollution of our waters by 2030.
That would only reduce the problem to 225,000 sewage spills a year.
Mr Reed insists it is an “ambitious” target and has staked his political future on hitting it.
He should start his task by delivering a clear message to fatcat water chiefs.
Clean up our rivers, or clear off.
It comes as Mr Reed prepares to unveil a new legally binding water ombudsman, expand the Consumer Council for Water, and bring the system into line with other utilities.
He will today say the report is a wake-up call to make sure “the failures of the past can never happen again.”
Over the weekend, the Environment Secretary vowed to halve sewage pollution by 2030 using £104 billion of investment.
Tory Victoria Atkins warned Labour must be “transparent” about what replaces Ofwat – but accused the party of copying old Tory ideas.
The final report follows nine months of digging, with over 50,000 public responses helping to shape it.
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