The government has announced the creation of a new ombudsman to address consumer grievances related to water companies, including issues such as leaks, billing errors, and service disputes.
This initiative is part of a broader industry overhaul planned in response to public concern over rising water bills and increased sewage discharge into UK waterways, with further details expected to be unveiled shortly.
Significant regulatory changes are anticipated, particularly following the Water Commission’s forthcoming review of the sector, scheduled for release on Monday.
Environment Secretary Steve Reed has previously pledged to halve the frequency of sewage discharges by water companies by 2030, marking the first time the government has established a clear target for pollution reduction in this area.
During a recent interview, Reed characterized the water sector as “broken” and its regulator as “clearly failing,” signaling the potential for sweeping reforms.
Reed has stated that voters can hold him accountable if water quality improvements are not evident by the time of the next general election.
However, he refrained from commenting on the possibility of abolishing Ofwat, a recommendation that may be put forth by the Water Commission in its Monday report.
Feargal Sharkey, former frontman of The Undertones and a prominent advocate for cleaner waterways, expressed concerns that the report may not be radical enough to address the sector’s challenges, anticipating a potentially underwhelming outcome.
The latest announcement will establish a dedicated consumer watchdog for the water industry, providing a centralized point of contact for complaints, aligning it with other utility sectors.
The plan also entails an expanded role for the Consumer Council for Water (CCW), the public body currently responsible for handling complaints.
While the Department for Environment, Food and Rural Affairs (Defra) has not provided a specific timeline for the implementation of the new ombudsman, it has confirmed that the position will have the legal authority to protect customers in disputes with their water company.
The state of UK waterways and the role of private water companies have become a focal point of public debate, with widespread calls for increased government oversight and stricter regulations.
The sector faces the need for significant infrastructure upgrades to accommodate a growing population and the impact of more extreme weather events resulting from climate change.
Water companies have faced criticism for alleged underinvestment in infrastructure, while simultaneously distributing substantial payouts to executives and shareholders.
Recent data from the Environment Agency revealed that the number of instances in which water companies discharged sewage into England’s waterways reached a record high of 2,801.
Reed stated that he has spoken with individuals “up and down the country” who are “furious about the state of our water.”
A survey conducted by the CCW in May indicated a decline in public trust in water companies, with only 35% of respondents expressing satisfaction with their provider’s efforts to protect the environment.
A record £104 billion is slated for investment in the water sector over the next five years to enhance infrastructure.
Consequently, consumer bills are projected to rise by an average of £123 annually, with increases potentially reaching as high as £224 for Southern Water customers.
Victoria Atkins, the shadow environment secretary, acknowledged the creation of a new ombudsman as a positive step in principle but emphasized that it would only address a small part of the water industry’s broader issues.
“We all want the water system to improve, and honesty about the scale of the challenge is essential,” she stated.
Atkins further called on the government to clarify the source of investment and how reforming or replacing Ofwat would effectively contribute to cleaning up rivers and lakes.
Liberal Democrats environment spokesperson Tim Farron MP commented: “To effectively tackle the sewage scandal, we need fundamental change, not another layer of bureaucracy.”
However, he conceded that a new ombudsman could provide a means of recourse for consumers “who for too long have been forced to foot the bill for failing water companies.”