Replacement of Ofwat 'positive step in the right direction'

The comments from the Lib Dem group leader at West Northamptonshire Council come after a damning report into the sector.

Author: Andrea FoxPublished 21st Jul 2025
Last updated 21st Jul 2025

Following a damning report into the water sector it's been recommend Ofwat the water regulator be replaced.

It will be replaced with the creation of one new body for England, and another for Wales.

The environment secretary, Steve Reed announced the changes as part of measures to overhaul the sector following a landmark independent review by Sir Jon Cunliffe's who made 88 recommendations.

Mr Reed said the move to create a single "powerful" regulator taking in the functions of four existing bodies with overlapping functions would curb pollution and "prevent the abuses of the past for customers".

He said it would ensure "British families are never again hit by the shocking bill hikes we saw last year", and committed to cut water companies' sewage pollution in half within five years.

It's a move local Lib Dems say is a positive step in the right direction. Changes to the sector have been called for by the party since 2022.

Jonathan Harris is the Lib Dem group leader at West Northamptonshire Council. He says the new body will need to have 'teeth' to deal with issues like sewage and a failing infrastructure.

"I think if people actually see the spillages reduce, that's going to be the real measure. I've actually been looking this morning at the local sewage map of Anglian water and there are only three water companies today showing in red and Anglian is one of them."

He also says the Lib Dems believe something called a public benefit company could be one option to replace Ofwat

"You may be aware that the Lib Dems have suggested something called public benefit companies as a potential option to to look after the water companies got moving forward. That there are companies like Ben and Jerry's ice cream, Patagonia, people like that.

"And the main difference is they also have a very strong societal and environmental backbone or beneficial element that they need to contribute to. So from my point of view, the environmental issue shouldn't be ignored in all of this."

Jonathan says the environmental aspects are just as important as water bills.

Water UK boss David Henderson says the industry welcomes the move.

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