HeadlinesBriefing favicon HeadlinesBriefing.com

Burnham Plans New Regional Oversight Of Water Companies

Financial Times Companies •
×

Andy Burnham is considering a new system of oversight for England's water industry that would give mayors and local political leaders greater responsibility for companies in their regions. The UK prime minister stated in June that he wanted to ensure all parts of the UK can take greater public control of essential services. Now, the government is looking at creating nine new regional bodies responsible for setting objectives for water companies and holding them to account.

This proposal was originally put forward by Sir Jon Cunliffe in the Independent Water Commission last year. While the idea aims to satisfy Burnham's desire for greater public control, it is unlikely to satisfy MPs and campaigners calling for full renationalisation after years of poor performance and rising bills. Under Cunliffe's plans, the new regional water authorities would be responsible for planning, funding, setting water body objectives, and monitoring delivery.

The authorities would consist of mayors or local council leaders as well as experts from areas such as transport and agriculture. Importantly, these regional bodies would not displace Ofwat, the main industry regulator. The main recommendation in Cunliffe's report, already accepted by ministers, was for Ofwat to be dismantled and replaced with a more powerful regulator.

Its economic functions would merge with the water-related responsibilities of the Environment Agency, Natural England, and the Drinking Water Inspectorate. One water industry adviser suggested water companies would be relaxed about the proposals as they do not equate to state control. On Monday, a parliamentary debate on public ownership saw more than 60 MPs speak in favour of ending privatisation, with campaigners arguing only full public ownership will drive the radical changes the country needs.