The Government called it the biggest overhaul of the water sector since privatisation but campaigners criticised the plans saying it creates an “illusion of change”

Wales is to have its own water watchdog, the Welsh and UK governments have announced. It comes after a review called for the system for regulating water companies to be overhauled and replaced. Ofwat, the body that does the job for England and Wales now, is to be scrapped.

A review into the UK’s troubled water industry has recommended Ofwat be scrapped as part of a complete regulatory overhaul. Sir Jon Cunliffe, the former Bank of England deputy governor, called for a single integrated regulator in both England and Wales to ensure private companies act in the “public as well as private interest.

The Government will replace Ofwat with a new unified regulator to tackle record water pollution and strengthen public health protections

Ofwat itself has accepted its fate after the Cunliffe Report said it had failed the public and should be scrapped.

Sir Jon told BBC Breakfast: "Bills are going to rise by 30% over the next five years. There are some inescapable facts here. The cost of producing water and dealing with our wastewater is going up. Climate change, higher environmental standards, demographic pressure, the population is going up. Just that need to renew ageing infrastructure.

Debt-laden Thames Water, the country’s biggest water company, is trying to stave off “special administration” (a form of insolvency). It recently reported an annual pre-tax loss of £1.6bn ($2.2bn). But perhaps the strongest pong is regulatory.

Britain will create a new powerful regulator for its water industry following public fury over sewage spills, accepting the key proposal of an independent report that also suggested easing up on pollution fines to prevent companies from collapsing.

Multiple reports suggest the review has concluded and Ofwat should be abolished as ministers look to replace it with a new regulator for the beleaguered industry. The regulator employs about 300 people.

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