Key facts
- UK government is exploring plans to give mayors and local leaders oversight of water companies.
- These powers could include directing company spending and holding executives accountable for bills and sewage discharges.
- The proposals are partly in response to growing public dissatisfaction and pressure on figures like Andy Burnham to improve water industry oversight.
- A review by Sir Jon Cunliffe recommended creating regional bodies with stronger authority over water companies' investment decisions.
- The number of complaints made by households to the Consumer Council for Water has risen significantly, with one report stating an 84% increase year-on-year.
The UK government is considering granting mayors and other local political leaders greater oversight of water companies as part of efforts to increase public control over the utilities sector. Officials in the Department for Environment, Food and Rural Affairs are reportedly keen on the idea, which was a key recommendation from Sir Jon Cunliffe's Independent Water Commission published last year.
Under the proposed plans, local leaders could be empowered to direct aspects of water companies' spending and hold executives accountable for issues such as rising bills and sewage discharges. This comes amid growing public dissatisfaction with the water industry, evidenced by a significant increase in customer complaints. The Consumer Council for Water reported a 48% year-on-year rise in complaints, with the BBC citing an 84% increase, the steepest in two decades.
Mayor Andy Burnham has been a vocal proponent of bringing public utilities under greater public control and faces pressure to address concerns about the water industry. While nationalisation has been discussed, the current proposals focus on establishing regional bodies comprising mayors, independent chairs, and experts to provide stronger authority over companies' investment priorities. Ministers are also considering options for Thames Water, which has faced financial difficulties, including special administration or a private sector-led solution.