Image description: A white sign on a grey brick wall reading “Senedd Cymru, Welsh Parliament”. Image by Jonny Gios / Unsplash
Ministers have confirmed Wales is set to receive a “new, stand-alone regulator” for the water sector, following the scrapping of Ofwat.
Irranca-Davies, also cabinet secretary for climate change, reportedly told the Senedd “bold reforms” were needed, with the public “rightly worried about their water bills and the state of our waterways”.
Decision made following Independent Water Commission recommendations
He was outlining the Welsh government’s next steps after a major review called for oversight of water companies in England and Wales to be completely overhauled.
The Independent Water Commission, led by former Bank of England deputy governor Sir Jon Cunliffe, made 88 recommendations, including replacing the industry’s current watchdog Ofwat in England and Wales. The review suggested a new economic regulator for Welsh water companies could either be integrated into the existing environment watchdog Natural Resources Wales (NRW), or establish a separate organisation.
The next steps for Wales
The Welsh government has now set out its preference for the latter and will create a standalone body. The new regulator would be tasked with supporting long-term investment in infrastructure and environmental protection, “strengthening public confidence” in the sector, it said. Other plans include seeking new powers for the Senedd to pass laws independently on water industry regulation and planning for the first time.
A consultation on the proposed model will be launched later this year.
Irranca-Davies noted that “we could be looking at several years to bring this through and properly design this system”.
Gail Davies-Walsh, chief executive of Afonydd Cymru, which represents rivers trusts in Wales, said the government’s plans for a new watchdog were welcome. However, river campaigners warned the time it would take to implement the reforms was “concerning” – “Aside from needing initial Westminster approval, next year’s Senedd elections are likely to delay the process further, placing Wales behind England in the restructure of water industry regulation.” Afonydd Cymru also said it was important to note “ this statement focuses only on the water industry. Action is also needed with other sectors if rivers in Wales are to improve.”