Ofwat to be abolished and replaced with new regulator

The water regulator is expected to be scrapped next week as a government review concludes it is not fit for purpose.

- ARCHIE MITCHELL

Ofwat is reportedly to be abolished on Monday under recommendations from the review led by former Bank of England deputy governor Sir Jon Cunliffe.

Environment secretary Steve Reed is expected to pledge a “root and branch” reform of the water industry, saying that “regulation has failed customers and the environment”.

He will promise that “hardworking British families will never again face huge shock hikes to their bills like we saw last year”, according to The Times.

Multiple reports suggest the review has concluded and that Ofwat should be abolished as ministers look to replace it with a new regulator for the beleaguered industry. The regulator employs about 300 people.

Sir Jon’s independent review has focused on the water sector and its regulation, with no limits on the scope of its potential recommendations.

Launching the review in October, environment secretary Steve Reed left getting rid of Ofwat altogether on the table. “I don’t rule that out. What I’ve asked Sir Jon to do is a root-and-branch review of the entire sector — that includes looking at regulation and the regulator,” he told Sky News at the time.