Water companies will not automatically have seats on new Regional Water Councils

(by Karma Loveday)

Government announced last week that eight new Regional Water Councils (RWCs) will be set up in England to give communities a greater say on priorities and investment – spanning sewage and water quality, flooding and coastal erosion, and drought and future water supples.

The councils will align with river basin districts as a starting point: Northumbria, Humber, North West, Severn, Anglian, Thames, South East and South West. But limited variations will be considered where these aid effective planning – for instance, alignment with Regional Flood and Coast Committee (RFCC) regions. The move is part of prime minister Andy Burnham’s drive to take more power out of Westminster, and to enable more public control over essential services.

Impact and establishment:

In an information note, environment secretary Dame Angela Eagle set out that this work will feed directly into PR29 via water industry plans (Water Resource Management Plans, Drainage and Wastewater Management Plans and the Water Industry National Environment Programme), as well as into River Basin Management Plans, and the ten-year flood investment programme. She said: “For the first time since privatisation, investment decisions through the next investment period will be shaped much more directly by the priorities of local communities, regional leaders and those who understand the needs of places best.”  The review, she promised, “will not be a business-as-usual price review. It marks the beginning of a long-term transition to a different model for the water system: one that is more accountable, more transparent, more responsive to local priorities, brings together all the sectors that affect and depend on the water system; and builds on local insight and priorities.”

Defra noted the next 12-18 months will be critical, with the next nine months especially pertinent for influencing PR29. It invited mayors to work with local authority leaders and key water sector stakeholders to establish each RWC, including: 

• Deciding how it is chaired. Someone should be nominated from within the region and from outside the water industry. This could be a mayor or alternative candidate. The secretary of state will have the final say on appointments.

• Deciding its composition. Between ten and 15 members are expected on each RWC, and there should be representation from democratically elected leaders (mayors and local authorities), farming interests, catchment partnerships, customers, environmental organisations, RFCCs, flood experts and water supply experts. RWCs are free to include other members, such as MPs, trade unions, businesses or public health specialists. The information note stipulated: "It will also be for the RWCs to decide if water companies should be on the board, and what role they should play (for example, decision maker, advisor or observer).” Defra itself and the regulators will be involved in an advisory capacity, and the Defra team will provide RWC support and central coordination.

• Agreeing draft terms of reference.

Next steps:

Outline plans should be provided to Defra for feedback by the end of the year. These must detail the above, as well as what activities are planned and how customer and public views will be collected, considered and used.

Draft regional plans are expected by summer 2027, setting out: regional pressures; proposed outcome-focused priorities; trade-offs; and key processes and funding routes. Defra is also keen for the councils to test out other aspects, such as data requirements, blended financing and approaches to wrap in nature-based and preventative solutions.

Ultimately, the RWCs will inform the design of the Water Bill. A national Regional Water Planning Steering Group will be charged with identifying best practice and how to overcome challenges. Until the Water Bill is passed (expected to be 18-24 months), the councils will be informal and advisory, with membership voluntary. £1m has been made available to fund the establishment.

Separately through the Water Bill, mayors will also receive new powers to hold water companies to account for their performance. 

Reaction:

Defra’s announcement has received public support from a number of mayors and environmental groups. United Utilities also published a supportive statement, which cited its successes from working with place-based partners including in Greater Manchester with the Integrated Water Management Plan, in the Lake District with its Only Rainwater into Windermere project, and in the Liverpool City Region on sustainable drainage.

However, many questions remain, not least pertaining to whether the RWCs will be able to get up and running in time to make a meaningful impact, and whether they will have the competence and capacity to grapple with complicated, cross-sector, wide-ranging planning.