Water Regulation Overhaul will see New National Water Ombudsman Created...
- teessidetoday
- Jul 21
- 3 min read
Radical plan to fix England’s broken water system begins with the proposals for a new water watchdog to finally bring the big water polluters to account
21st July 2025
A report released by the Independent Water Commission over the scale of the UK's 'Broken Water System' is recommending a complete overhaul of how water is regulated, paid for, and governed in England and Wales.
Amongst the most striking changes proposed are said to be the creation of a single powerful water regulator, with nine new regional water planning authorities, and stronger consumer protections – all aimed at restoring trust in an industry that many believe is institutionally corrupt. .
For people living in Teesside & County Durham, where residents have long raised concerns about rising water bills, river pollution, and a lack of accountability by the water companies, its claimed the recommendations could be significant – but only if the government follows through with the recommendations of the report.
OFWAT 'Off you Trot' !
The Commission, chaired by Sir Jon Cunliffe, warns that the current system is fragmented, unaccountable, and unprepared for the huge challenges ahead – from population growth and climate change to aging infrastructure and corporate mismanagement.
Key proposals include:
One Regulator to Replace the Mess: A new single integrated regulator for England would replace Ofwat, the Drinking Water Inspectorate, and relevant water functions from the Environment Agency and Natural England. This would close the current "regulatory gaps" that have allowed water companies to escape proper scrutiny – especially in places like the North East.
Local Water Authorities: Eight new Regional Water Authorities in England would be created – including likely one for the North East, which would put planning and funding decisions in the hands of regional representatives from councils, public health, farming, and the environment. This could give communities in Teesside & County Durham a greater say in long-term infrastructure planning, pollution clean-ups, and ensuring value for public money.
Upgraded Customer Protection and Fair Billing: The consumer watchdog CCW would be upgraded to an independent Ombudsman for Water, with real powers to resolve complaints. In addition, its claimed a national social tariff would be introduced, to ensure low-income households receive consistent support no matter where they live.
Currently, its claimed support for water bills for lower income households varies by hundreds of pounds depending on region – a postcode lottery that disadvantages many living in the North the report claims....
After repeated national scandals about raw sewage being dumped into rivers and seas – including in the North East – the Commission is said to be calling for:
Mandatory water metering
Tighter environmental regulation of sewage, sludge, and pollutants
New public health safeguards to protect swimmers and surfers from contaminated water
Investment in digital monitoring to stop water companies marking their own homework
There’s also a strong focus on tackling emerging threats such as PFAS, microplastics, and industrial contaminants – issues that have gone under the radar for too long.
Cracking Down on Greedy Water Company Investors
The report also pulls no punches on corporate accountability, where its claimed the report is now proposing to give the regulator power to block takeovers or investors who fail to prioritise public interest, with water firms being required to hold minimum capital levels to prevent excessive borrowing, as well as adding in a ‘public benefit’ clause to company licences to ensure reinvestment in the water infrastructure is maintained – & dividends for shareholders curbed...
Restoring Trust in A Broken Industry.... But stops short of proposing Re-nationalisation of the Water Industry....
The report states the aim of these reforms is to “restore trust” in an industry many believe has lost its moral compass, however stopped short of recommending the full re-nationalisation of the UK water industry which the government claims would cost tens of millions of pounds. Whether it’s possible to fix whats now branded a completely broken industry with new regulators, red tape and regional bodies is yet to be seen – but giving communities a proper say is being hailed as an essential first step.
If delivered properly, the proposals could mean Water companies are held more accountable for their actions in what many claim has become an industry thats morphed into a law onto themselves, with corporate greed overtaking the needs of the communities which they serve as bills go sky high, pollution off the charts & directors & shareholders appearing to be the only winners raking home substantial profits, whilst using tax avoidance loopholes to dodge paying their contribution to the economy through loading the firms up with debts at the cost of a broken infrastructure that simply cannot cope.
