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New independent commission to report on water’s future by summer

by Karma Loveday

An independent commission, chaired by former deputy governor of the Bank of England, Sir Jon Cunliffe, will provide recommendations on the future of the water sector to the UK and Welsh Governments by June 2025. 


Those were among the details confirmed by the Government last week about its previously announced plan to conduct what Defra called “the largest review of the industry since privatisation”.


The Water Commission will comprise experts from the regulatory, environment, health, engineering, customer, investor and economic sectors, and will make recommendations which will form the basis of further legislation.


Cunliffe signalled that regulation would be central to his approach. He said: “It is vital we deliver a better system to attract stable investment and speed up the building of water infrastructure. Working over many years in the public sector, in environment, transport and the Treasury, and the Bank of England, I have seen how the regulation of private firms can be fundamental to incentivising performance and innovation, securing resilience and delivering public policy objectives.”


Terms of reference covering the vision, objectives, scope, delivery and timeline have been published. Defra said the objectives of the Commission are to recommend measures to ensure the regulatory system delivers:  

  • Clear vision: establishing clear outcomes for the future and a long-term vision for delivering environmental, public health, customer and economic outcomes.  

  • Strategic planning: adopting a collaborative, strategic, catchment approach to managing water, tackling pollution and restoring nature.  

  • Better regulation: rationalising and clarifying requirements for companies to secure better customer and environmental outcomes. 

  • Empowered regulators: ensuring regulators are effective in holding water companies accountable, for example for illegal pollution. 

  • Improved delivery: enhancing the sector’s ability to meet obligations, including clean rivers, lakes and seas, while driving innovation. 

  • Stable framework: ensuring a regulatory environment that attracts investment and supports financial resilience for water companies.  

  • Consumer protection: safeguarding consumer interests and affordability through transparent and fair governance.  

  • Resilient infrastructure: delivering and maintaining robust infrastructure on time, anticipating future needs and climate challenges.


Scope will be “limited to the water industry in England and Wales and the strategic planning framework under the Water Framework Directive and River Basin Management Plans to ensure the effectiveness of strategic water planning across sectors. Where housing, planning, agriculture and drainage interlink with strategic planning for the water system, these are in scope.” However: “To ensure the scope is manageable, the commission is not being asked to consider the specific regulatory approach to non-water industry related regulation, for example those for flooding and agriculture and wider planning reforms. The commission should consider them only in the context of their interactions with strategic planning for water.”


The Water Commission has been widely welcomed, though criticisms are already surfacing, including on the restricted scope of the review and its general positioning alongside criticism of the water sector and the Special Measures Bill.

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