UK Pledges Consumer Champion for Scandal-Ridden Water Sector
(Bloomberg) -- Britain will set up a new office to investigate consumer complaints against water companies as part of a “root and branch” overhaul of a sector in crisis after years of under-investment and pollution scandals.
The proposed water ombudsman would have binding legal powers to resolve disputes, unlike the current “voluntary” system, and bring the sector into line with other utilities, the Department for Environment, Food and Rural Affairs said in a statement Sunday.
The announcement comes ahead of a major report from the Independent Water Commission led by Jon Cunliffe, a former deputy governor at the Bank of England. The review due on Monday is set to outline ways to overhaul the sector, including the regulator Ofwat, which scrutinizes companies and their performance.
Environment Secretary Steve Reed will respond to the findings by pledging to reform the industry. He is also expected to offer assurances the government will protect families from large bill hikes, according to his department.
“The water industry is broken. Our rivers, lakes and seas are polluted with record levels of sewage. Water pipes have been left to crumble into disrepair. Soaring water bills are straining family finances,” he will say in a speech.
The industry has faced a public outcry after aging infrastructure allowed pollution from sewage to flow into waterways. In 2024, sewage spilled into seas and rivers reached a total duration of a record 3.6 million hours, or the equivalent of four centuries.
Earlier on Sunday, the government made a new commitment to cut sewage pollution in half by 2030.
However, the price of fixing the problem is falling back on consumers at a time when the cost of living is topping the political agenda. At the same, major companies like Thames Water Utilities Ltd. face huge financial shortfalls. Thames Water is also racing to find ways of avoiding temporary nationalization.
The opposition Conservative Party said “honesty” about the scale of the challenge is essential.
“Steve Reed must explain that bill payers are paying for the £104 billion investment plan,” Victoria Atkins, who shadows Reed for the Tories, said in a statement. “Ministers must also explain how replacing one quango with another is going to clean up our rivers and lakes.”
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