Government Confirms Water Sector Shake-Up

The Department for Environment, Food and Rural Affairs (Defra) has confirmed to the Consumer Protection Bureau (CPB) that it will abolish Ofwat and establish a new, unified water regulator. This major reform follows recommendations from the Independent Water Commission and is set to introduce stronger oversight of the sector.

Alongside this, Defra has also announced the creation of a statutory water ombudsman with legal powers to resolve complaints relating to billing disputes, water supply issues, and service failures.

While CPB has welcomed these long-awaited reforms, Managing Director Yousouf Jhugroo has urged caution, warning against repeating mistakes seen in other industries:

We do not want another Financial Ombudsman Service — slow, opaque, and inconsistent. This new watchdog must be effective, visible, and rooted in public trust.

CPB has called on Defra to actively involve the Bureau in shaping the ombudsman model, including:

• ⬥ Setting outcome standards
• ⬥ Monitoring transparency and enforcement
• ⬥ Ensuring restitution for past harm to consumers

Key reforms welcomed by CPB:

• ⬥ End of operator self-monitoring
• ⬥ Real-time open pollution data
• ⬥ Catchment-based planning with regional oversight
• ⬥ Creation of a single regulator with full statutory powers

CPB will engage closely in the government’s upcoming consultation and will host roundtables with experts and consumers to develop a strong, evidence-based response.