Image description: A river running through a lush green forest at Pontcysyllte Aqueduct, Wrexham. Photo by Sebastian Herrmann on Unsplash
The Welsh government has unveiled plans for a fundamental reset of the nation’s water system, including a new standalone regulator to replace Ofwat in Wales, national infrastructure planning and tougher controls on sewage sludge spreading on farmland.
Announcing the reforms at a press conference, Deputy First Minister Huw Irranca-Davies, said it was “time for a fundamental reset. Climate and nature emergencies, ageing infrastructure and public concerns about water quality demand decisive action.”
New regulatory structure
The centrepiece proposal is a new standalone body to replace Ofwat in Wales, becoming the “economic regulator and system planner” for water. The organisation would support long-term infrastructure investment and take on a national planning role to upgrade ageing pipes and sewers, delivering “a more integrated and responsive approach to managing water.”
However, environmental regulation and pollution oversight would remain with Natural Resources Wales (NRW), marking a key difference from England’s plans for a single consolidated water watchdog. Establishing the new organisation requires Wales to secure new powers from the UK government before passing Senedd legislation.
Additional reforms proposed
The government plans to develop a new 25-year national water strategy for Wales, replacing a document published in 2015. Water companies’ self-monitoring and performance reporting systems will be reviewed, “recognising there are concerns about the robustness of these systems,” with steps including more automation and inspections to “provide greater assurance.”
Tougher controls are proposed over spreading sewage and septic tank sludge on farmland as fertiliser, alongside limits on digestate use from anaerobic digestion plants. Afonydd Cymru, an umbrella organisation representing member river trusts across Wales with Natural Resources Wales and Welsh Government, said it was “particularly encouraged” by this proposal, citing inappropriate spreading as among the “chief contributors to high nutrient levels in Welsh rivers” and cause of “specific, catastrophic incidents.”
Timeline and funding challenges
The reforms follow a major review commissioned amid mounting public anger over water company performance.
However, as Wales is pursuing its own path under devolved powers, implementation will face significant hurdles. The changes would take years to deliver, with the new regulator not expected to be operational until the early 2030s. Substantial funding is required beyond what can be raised through customer bills alone.
Gail Davies-Walsh, Afonydd Cymru chief executive, said the proposals offered “a beacon of hope” and “significant potential to effect positive change for rivers,” but urged quick action. She noted the “thorny issue” of funding remained “not resolved either – more money will be required than can be raised through water bills.”
Wales’ Future Generations Commissioner Derek Walker called the announcement “a wake-up call for the water industry,” emphasising that “everything must be done to ensure the transition to a new body happens without delay to deliver long-term environmental recovery and affordability, alongside strengthened compliance and regulation.”
Ofwat interim CEO Chris Walters confirmed the organisation would support development of the new regulatory body and “remain committed to the delivery of our core functions” in the meantime. A public consultation on the proposals runs until early April.