Wales to get own water watchdog as Ofwat scrapped | UK News

Wales is to have its own water watchdog, the Welsh and UK governments have announced.

It comes after a review called for the system for regulating water companies to be overhauled and replaced.

Ofwat, the body that does the job for England and Wales now, is to be scrapped.

The Welsh government will have to decide if a new organisation will be set up or whether Natural Resources Wales (NRW) will take on the role.

Former Welsh Conservative Senedd leader Andrew RT Davies said more powers was the last thing the “failed” quango needed.

Concerns were raised earlier this year about NRW’s ability to carry out its existing work to police Wales’ environment.

The review said water remained a sensitive issue in Wales because of the flooding of Tryweryn in the 1960s, and that a Welsh regulator would better reflect the priorities in the country.

Whoever takes on the role would have the job of keeping check on Welsh Water, which last year was given significant multi-million pound fines over leakage and other complaints.

Ofwat ensures water companies carry out their duties and are run properly.

NRW already regulates Welsh Water over pollution – last week it said Welsh Water recorded the highest number of sewage pollution incidents in ten years.

Welsh government climate change secretary Huw Irranca-Davies said he intended “to progress the commission’s recommendation for a separate independent economic regulator for Wales”.

No date has been announced for the changes.

The Independent Water Commission carried out the largest review of the sector since it was privatised, following widespread concerns over pollution, bills and bosses’ pay.

Making 88 recommendations, it called for the system that regulates water companies to be replaced with a body for Wales and a body for England.

The review said Wales’ water system was “distinct and unique”.

“Water holds deep cultural significance in Wales, and it remains a sensitive issue, particularly due to historical events such as the creation of the Treweryn reservoir,” it said.

The village of Capel Celyn was flooded in 1965 for the benefit of drinking water for Liverpool, despite 35 of 36 Welsh MPs having voted against it.

The review said the pressure facing the Welsh water system was different to England, with a higher proportion of land used for agriculture.

It added a new regulator for Welsh water companies could be integrated into NRW, or could be a stand-alone body.

“This would be a significant development, which would ensure that economic regulation of Welsh water companies better reflects the priorities and context of Wales,” it said.

The review said NRW, which already acts as Wales’ environment watchdog, should also have stronger enforcement powers.

Most customers in Wales are served by the not-for-profit company Welsh Water, with some served by Hafren Dyfrydwy, part of Severn Trent.

In abolishing Ofwat, UK government environment secretary Steven Reed promised that households would “never again” face major water bill hikes.

In a statement, the Westminster administration said it would “work closely with the Welsh government to devolve economic regulation of water to Wales”.

Irranca-Davies said it was a “once in a generation opportunity to reset arrangements created before devolution”.

Expressing concerns about the prospect of NRW taking control, Andrew RT Davies said: “Of the top 20 polluted most polluted rivers in England, five are in Wales – this happened on Senedd ministers’ watch.

“Senedd ministers must take responsibility for failings in the water industry in Wales – NRW should not be granted more powers, instead it should be closed and replaced.”

NRW declined to respond to Mr Davies.

Sir David Henshaw, Chair of NRW, said: “We support the strategic direction outlined for the industry, including a Wales-specific approach to economic regulation, and further review of associated legislation. It is essential that any such review upholds and strengthens existing environmental standards.

“In recent years, we’ve worked hard to address declining performance amongst water companies, using the full range of enforcement tools available to us. But the pollution incident and spill reports we published last week highlight the urgent need for stronger and more flexible regulation and enforcement needed to drive transformative change.”

Plaid Cymru accused the Welsh government of having the ability “to devolve full control over our water” and having refused to use it.

“Plaid Cymru will devolve these powers to help drive down bills; improve consumer choice and accountability in the water market, and reduce pollution and improve water quality”, the party’s Delyth Jewell said.