Key facts
- UK government considering giving mayors oversight of water firms.
- Local leaders could direct spending and hold executives accountable for bills and sewage.
- Andy Burnham faces pressure to improve water industry oversight.
- Thames Water's regulated asset value was estimated at £23bn in March.
- Complaints about water companies are up 48% year-on-year.
The UK government is exploring plans to grant mayors and other local leaders powers to oversee water companies, a move aimed at increasing public control over the utilities sector. These proposals could allow local authorities to direct aspects of water companies' spending and hold executives accountable for issues such as steep bill increases, infrastructure failures, and sewage discharges.
The idea of giving local political leaders more authority was a key recommendation in a review by Sir Jon Cunliffe last year, which suggested it would ensure local voices and experts have stronger influence over companies' investment decisions. The proposed regional authorities could comprise local government figures, mayors, independent chairs, and other experts, potentially covering sectors like transport and agriculture.
While no firm decisions have been made, officials within the Department for Environment, Food and Rural Affairs are reportedly keen on the concept, according to the BBC. This exploration comes amid growing public dissatisfaction with the water industry. The Consumer Council for Water reported a 48% year-on-year increase in household complaints, the steepest rise in two decades, reflecting significant customer dissatisfaction.
Andy Burnham, a prominent figure advocating for public control of utilities, has previously expressed intentions to nationalize Thames Water. In March, Thames Water's regulated asset value was estimated at £23bn, with net debt rising to £18.5bn. Ministers are currently considering options for the company, including special administration or a creditor-led solution that would maintain private sector control after a debt write-off.
A government spokesperson stated that the water industry has not been working effectively for people and that the government is implementing tougher regulation, stronger enforcement, and greater accountability to ensure water companies serve customers and the environment.