How to clean up England's water sector?
A report by the UK's Independent Water Commission paints a bleak picture of the water supply sector in England, which was privatised in the 1980s, concluding that inefficiency, blatant disregard for environmental standards, leaks and poor water quality are rife. Environment Secretary Steve Reed reacted by announcing that the current water regulator will be scrapped and replaced to overhaul the entire system.
Undeserving of bailout
The Guardian is incensed:
“Resentful customers have no choice but to keep paying bills that are expected to rise by a third over the next five years - though Thames Water, inevitably, asked to be allowed to charge more - while wondering how we ever let a commodity this precious become so badly managed, heading into a volatile new era of summer drought and winter flood. ... Thames Water should be allowed to fail, on the grounds that it has done nothing to deserve a taxpayer bailout. ... Ministers need to find a broader way of conveying that failure has consequences, and not just for the taxpayer.”
Time for a new regulatory framework
Expertise is needed, says The Economist:
“Britons are fed up with seeing filthy discharges from overloaded sewers and treatment works, often forced by heavy rain. On July 18th the Environment Agency (EA), a regulator, reported that in 2024 there were 75 'serious' pollution incidents - likely to kill fish or harm bathers - up from 47 the year before. ... Public confidence in the industry and in Ofwat are at rock-bottom. The regulatory framework is riddled with inconsistencies; it seems wise to bring the economists, engineers and environmental scientists under one roof. But judging their efficacy will take years.”