Wales will establish a “new, independent regulator” for the water industry after the cancellation of Ofwat, as confirmed by officials.
It comes after a reviewdemanded a complete reform of the supervision of water companies in England and Wales.
Deputy First Minister Huw Irranca-Davies stated that the existing water system is not functioning as effectively as it should, and there is a “once-in-a-generation” chance to make improvements.
However, river advocates cautioned that the duration required to enact the changes was “alarming”.
Irranca-Davies, who also serves as the cabinet secretary for climate change, addressed the Senedd, stating that “bold reforms” are necessary, as the public is “rightly concerned about their water bills and the condition of our waterways.”
He was detailing the Welsh government’s upcoming actions following the release of a significant review of the water industry in July.
The Independent Water Authority, headed by former Bank of England deputy governor Sir Jon Cunliffe, issued 88 suggestions, includingreplacing the industry’s present regulator Ofwat in England and Wales.
A new economic oversight authority for water companies in Wales might either be incorporated within the current environmental monitoring agency, Natural Resources Wales (NRW), or function as an independent organization, according to the review.
The Welsh administration has recently outlined its inclination towards creating an independent body.
The updated regulatory body would be responsible for promoting sustained investment in infrastructure and environmental conservation, “enhancing public trust” within the industry, it stated.
A discussion regarding the suggested framework is set to begin later this year.
Additional proposals involve pursuing additional authorities for the Senedd to enact legislation autonomously concerning the water sector and planning, for the first time.
Irranca-Davies highlighted that the transformation would require patience.
“Revamping the water industry is a challenging, extended process – yet it also presents a chance to build a more efficient water system and demonstrate the potential of devolution,” he stated.
To “ensure stability and public trust” – a joint transition strategy would be established with the UK government, along with temporary measures involving Ofwat and other regulatory bodies.
Janet Finch-Saunders, MS, the Welsh Conservative Party’s representative on climate change, expressed her approval that the new economic regulator would be autonomous “and not affiliated with NRW”.
“Too often, when there’s been an incident in my area, the water companies will say ‘it’s fine, we’ve reported ourselves to NRW,’” she stated.
But she wondered how swiftly the new organization would be established.
Irranca-Davies stated, “we might be looking at several years to move this forward and adequately design this system.”
Delyth Jewell, a member of the Senedd and Plaid Cymru’s environmental representative, stated that Wales is a country “fortunate to have numerous canals, rivers, and water sources.”
“But frequently, the advantages fail to reach our communities,” she stated.
The residents of Wales face some of the highest costs in these islands, and water scarcity continues to be an issue [as] sewage contaminates our rivers and oceans.
Gail Davies-Walsh, the head of Afonydd Cymru, an organization that advocates for river trusts across Wales, stated that the government’s proposal for a new regulatory body is positive.
“Additionally, it is promising to see the effort to enhance Wales’s autonomy in enacting more stringent environmental laws and executing them,” she stated.
“Nevertheless, the duration required to carry out these changes is worrying,” she remarked.
Besides requiring initial approval from Westminster, the Senedd elections next year may further delay the process, causing Wales to lag behind England in the restructuring of water industry regulation.
It should be kept in mind that this statement is solely about the water sector. Measures are also required in other industries for rivers in Wales to show improvement.
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