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Welsh Water Model Won't Fix UK Industry, Says Chief

Financial Times Companies •
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Roch Cheroux, head of Welsh Water, has warned against other UK water companies adopting Welsh Water's not-for-profit ownership model, despite the utility operating without shareholders for over two decades. In an interview with the Financial Times, Cheroux stated that the regulatory model, rather than ownership structure, is crucial for addressing industry challenges such as sewage pollution and infrastructure upgrades.

His comments come as Prime Minister Andy Burnham faces mounting pressure to define what "public control" of the water sector means. Burnham is expected to address the Labour Party conference in Liverpool amid public outcry over sewage overflows, executive pay, and rising customer bills. While stopping short of full renationalisation, Burnham is considering options including new regional oversight boards, placing Thames Water into special administration, and creating mutualised co-operative models.

More than 80% of the public supports water renationalisation according to YouGov polling. Welsh Water, owned by Glas Cymru since 2001, has faced significant penalties including a £44.7m fine in June for serious breaches in wastewater operations. Cheroux, formerly of Sydney Water Corporation, acknowledged that Welsh Water's performance remains comparable to competitors despite reinvesting profits into the company.