Water Companies: Regulation

The Government and regulators work together to drive improvements that benefit both customers and the environment and hold water companies to account where necessary through strong enforcement action. We have set clear expectations of the sector, including regulators, and will not hesitate to take further action if we do not see the necessary action.

The measures that will be implemented through the Water (Special Measures) Bill are a down payment on the comprehensive reforms needed to restore our rivers, lakes, and seas to good health, meet the challenges of the future, and drive economic growth

The Secretary of State, in conjunction with the Welsh government, has launched an Independent Commission into the water sector and its regulation. The latest step in the Government’s programme to transform how our water system works. The Commission will adopt a broad scope. That will include considering the role of the regulators, ensuring they are effective for holding companies accountable, as well as establishing clear outcomes and a long-term vision for the future.

The Commission will report to the Secretary of State for Environment, the Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs with recommendations, in Q2 2025. The UK Government and Welsh Government will then respond and consult on proposals, including potential further legislation. The Government does not intend to issue a revised statement until after the outcomes of the independent commission.