Minister pledges ambitious response to Cunliffe recommendations

(by Karma Loveday)

Water minister Emma Hardy promised a “full White Paper” in response to the Cunliffe Commission recommendations, and a Water Reform Bill “early in this Parliament” when she gave a keynote address at British Water’s annual conference last Monday.

The minister’s speech indicated that the Government’s reform package will be ambitious and wide ranging. Change, she argued, is needed because water is an essential public service, vital for growth, and fundamental for the natural environment. Hardy said: “I want to be clear that this is our chance to make changes that will have an impact for decades to come. The prize is right there in front of us. To be part of real national renewal after years of decline.

“Yes, we face significant challenges, but also huge opportunities to build a regulatory system that is clear, coherent, and focused on outcomes. To attract the investment we need whilst protecting customers. To deliver infrastructure that doesn’t just patch over problems but builds resilience for decades to come. To deliver new jobs and opportunities to every single part of England and Wales. Most importantly, this is our opportunity to rebuild public confidence – to show that yes, water companies, regulators, and Government can work together to deliver the outcomes people expect and deserve.”

Hardy called on delegates to be ambitious, to collaborate to succeed, and to be accountable “to customers, to each other, and to the environment. Because ultimately, we will be judged not just on our plans or on our promises, but on whether we deliver real, visible, lasting change.”

Ahead of the formation of a single regulator, Hardy said “existing regulators will continue their duties, supported by enhanced powers under the Water (Special Measures) Act” but that “we’ll also take early steps to improve coordination, including joint enforcement efforts to align regulation and delivery”.

She further pledged: “This Government will ensure regulation is stable, predictable and fair, moving away from short-term decisions and recognising the unique challenges faced by individual companies. Our goal is clear: a water sector that is financially resilient, operationally effective, and attractive to investors.”

Water UK’s chief executive David Henderson said he took “solace” from the minister’s words and her grip on the situation. But he called for clear government priorities – and quickly – on water reform to enable the industry to respond at pace, and for the new regulator to be created in shadow form as soon as possible.