Following the announcement by the UK environment secretary of plans to scrap Ofwat and create a single regulator, reaction from across the water sector and stakeholders has been widespread.

A landmark review into the industry –  led by Sir Jon Cunliffe – concluded that Ofwat, the Water Services Regulation Authority for England and Wales, should be replaced, the Minister, Steve Reed MP, said Ofwat had “failed” to protect customers as he announced “the biggest overhaul of water regulation in a generation.”

He said the water system in the UK was “broken” and the government’s planned reforms would “prevent the abuses of the past.”

In a statement issued by Ofwat, a spokesperson said:

“The Cunliffe Report sets out a new direction for the water sector.

“While we have been working hard to address problems in the water sector in recent years, this report sets out important findings for how economic regulation is delivered and we will develop and take this forward with government. Today marks an opportunity to reset the sector so it delivers better outcomes for customers and the environment.

“In advance of the creation of the new body, we will continue to work hard within our powers to protect customers and the environment and to discharge our responsibilities under the current regulatory framework. We will also work collaboratively with all our stakeholders to ensure a smooth transition.”

Environment Agency chief executive Philip Duffy commented:

“It’s a milestone in turning around the water industry. On structure, none of us who have worked in the regulation of the water industry in recent years would defend the current system.

“The brilliant and hard-working officers, scientists and engineers at the Environment Agency know much more must be done to protect rivers and guarantee clean and plentiful water – but too often they lack the means to deliver these aims. Today’s announcement of a merger would help resolve that.

“This is big, bold change. Like all major reforms, it will be vital to get the detail right, to protect vital services and support staff, and it will take time to work through the full implications. That is why I welcome the secretary of state’s plans to consult widely on the detail and we look forward to working with Department for Environment, Food and Rural Affairs on this.”

Unions have also commented on the report

Gary Carter, GMB National Officer, said: “The Cuncliffe report lays bare what GMB has said for years – water privatisation has been a disastrous failure.

“Our rivers and waterways have been fouled, while bills rocket and fat cat bosses get rich. Meanwhile the water infrastructure crumbles through lack of investment. It’s a disgrace – and one Ofwat has overseen.

“Now is the time to fundamentally reform the water sector and renationalise this vital resource.”

The Chartered Institution of Water and Environmental Management’s (CIWEM) director of policy Alastair Chisholm said: “Sir Jon’s assertion that no single reform – however radical – will address all the problems that the water sector currently faces is on the money.

With this in mind, and given CIWEM’s multidisciplinary membership that understands the interlinked nature of the water cycle and all the human activities that impact it at various points, the Commission’s emphasis on better policy, regulatory and economic consideration of the full spectrum of pressures is particularly welcome.”

Institution of Civil Engineers (ICE) has welcomed what it describes as a ‘comprehensive and unflinching’ report.

Sam Gould, director of policy and external affairs at the Institution of Civil Engineers said,

“The Institution of Civil Engineers welcomes the Water Commission’s comprehensive and unflinching report. Managing complex systems like our water networks requires a systems-based approach, long-term planning, and significant investment.

“The report acknowledges that bills will rise, but services need to improve as a consequence. This is essential for rebuilding public trust in the water industry.

Mike Keil, Chief Executive of the Consumer Council for Water (CCW), added:

“Restoring public confidence in the sector hinges on whether water companies are committed to improving their culture, conduct and performance.

“People should also be able to use water without the worry of being able to afford their bill but April’s unprecedented rise in charges has compounded the struggles of millions of households. More people are turning to CCW to complain about not being able to afford their bill at a time when over 2 in 5 households have told us they’ve cut spending on essentials like food to make ends meet.

“The case for a single social tariff for water has never been more urgent or compelling and we’re pleased the Commission has recognised this.”

A statement issued by Water UK, the body which represents UK water companies, said:

“Everyone agrees the system has not been working. Today is a major moment and this fundamental change has been long overdue. These recommendations should establish the foundations to secure our water supplies, support economic growth and end sewage entering our rivers and seas.

“Crucially, it is now up to Government to decide which recommendations it will adopt, and in what way, but the Commission’s work marks a significant step forward.”

The Rivers Trust Chief Executive, Mark Lloyd, said:

“Many people will have wanted this report to go further and for it to be allowed to consider nationalisation of the water industry. This is understandable. However, I believe that the recommendations in this comprehensive report, if implemented by government, would lead to a dramatic improvement in the water environment and far more cost-effective delivery. We applaud the Commission and Sir Jon on the report and urge government to implement the recommendations and to act as fast as possible to revive our rivers before they get worse.”