Ministers look set to abolish Ofwat amid growing calls for a “complete overhaul” of failing regulators that have presided over a hike in the worst type of sewage spills.
Sources told The i Paper the regulator could be scrapped in name only or merged with parts of the Environment Agency.
TV presenter Chris Packham, who backed the campaign, welcomed the plan to scrap Ofwat.
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The naturalist said a “regulator with some teeth” could hold to account water companies who pump sewage into waterways.
“We need to start from scratch and get some proper regulation in place.”
The Government is undertaking a series of measures to clamp down on water companies. However, on Friday it emerged that “serious pollution incidents” were up 60 per cent compared to the year before.
“Serious pollution incidents are rising, sewage discharges remain rampant, and our rivers are spiralling toward ecological collapse. This is not just regulatory failure; it is a national disgrace.”
It is currently unclear exactly what scrapping Ofwat will mean for how the water industry is regulated going forward.
Ministers are also rumoured to be considering merging Ofwat with parts of the Environment Agency (EA) to create a new regulator that is responsible for financial and environmental regulation.
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Read MoreHenry Swithinbank, the policy and advocacy manager at Surfers Against Sewage, said it was “clear that the regulators aren’t working as they currently exist”, but “didn’t have a strong view” on whether Ofwat and the EA should be merged.
“What is crucial is that both of those regulators, or one of those regulators, should have a primary duty to protect public health again, rather than just securing a return for investors,” Swithinbank added.
Mark Lloyd, CEO of the Rivers Trust, said the “muddled” regulation of water firms “is the root cause of many of the issues with the sector”.
“Whichever solution the Government chooses, the water industry must have a regulator with the necessary resources and powers to ensure that the environment and our drinking water are protected and safe,” he said.
On Monday the commission will publish its final report, which will set wide-ranging reforms for the water industry.
Ofwat and the Government declined to comment.
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