Sarah Green, MP for Chesham and Amersham, has welcomed reports that OFWAT, the official regulator of the water industry in England and Wales, is set to be scrapped by the Government on Monday.
The news comes amid growing criticism of the regulator’s failure to hold water companies accountable for environmental violations and operational failures. According to recent media reports, OFWAT's dissolution will form part of the Government’s preparations for a major review of the water industry, to be led by Independent Water Commissioner Sir Jon Cunliffe.
Sarah Green, a member of Parliament’s influential Public Accounts Committee (PAC), played a leading role in the Committee’s inquiry into the regulation of the water sector. Today, the PAC published a damning report which concluded:
“The environmental performance of companies is woeful. Ofwat and the EA have failed to secure industry compliance.”
Commenting on the announcement and the Committee’s findings, Ms. Green said:
“OFWAT had lost all credibility with the public, with parliament and with the companies it was meant to regulate. I am glad that the Government has taken this overdue step and acknowledged that a new approach to regulation is needed for the water industry.
The pollution incidents of our rivers and streams continue to increase, with Thames Water being among the worst offenders. We need a new regulator, with real power and real teeth.”
The future structure of water regulation remains to be seen, but Green and other critics have called for any successor body to be given enhanced enforcement capabilities and greater transparency.
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