Key facts
- Labour is introducing new powers for water customers to hold companies accountable.
- Water companies have been consulted by the CCW on the implementation of these new powers.
- Campaigners argue this consultation makes the initiative a "stitch-up" and ineffective.
- The CCW is establishing "Water Voice" panels for consumer input on bills and company performance.
- A new water bill is planned to reform the industry and replace the current regulator, Ofwat.
Campaigners have criticized Labour's proposed new powers for water customers, labeling them a "stitch-up" due to water companies reportedly advising on their implementation. The Consumer Council for Water (CCW) is establishing "Water Voice" panels to allow consumers to question executives and seek redress for issues such as sewage dumping and water shortages.
Documents reveal the CCW consulted water companies on how to set up these accountability boards, a move that has drawn sharp criticism from figures like Feargal Sharkey, who stated that customer redress would be unlikely if the "extorters" are involved in setting up the system for victims.
The CCW has seen an 80% increase in complaints about water companies in the past year without a corresponding increase in resources. Prime Minister Andy Burnham is under pressure to take Thames Water into public control, a move complicated by potential legal challenges and Treasury concerns over costs.
As part of broader reforms, a new water bill is expected to replace the current regulator, Ofwat, with a body possessing enhanced supervisory powers, including appointing experts to work within water companies. A CCW spokesperson clarified that consultations with water companies focused on practicalities for ensuring their engagement, not on how they wished to be held accountable. The Department for Environment, Food and Rural Affairs affirmed the government's commitment to improving the water system and introducing an independent ombudsman.