Why a failure to reform water regulation would damage the Government
The public has had enough of water companies having been repeatedly let down. The overwhelming feeling is one of anger and frustration. Customers are being expected to pay more for a service that is embarrassing.
But that anger is no longer just reserved for the water companies themselves but also the regulators that are supposed to be protecting customers.
Instead the whole industry is suffering from a deep-rooted rot that has left Britain with sewage in its rivers and on its beaches, predicted major shortfalls of water and frequent flooding.
The report from the Public Accounts Committee (PAC) should be a wake up call for the Government. MPs are right to call on the government to act with urgency to strengthen oversight of the sector in order to rebuild trust and force the sector to improve its performance. Especially as water bills are expected to rise at their fastest rate in 20 years.
Over the next five years, customer bills are expected to increase by an average of £31 a year. On top of that, MPs found that 20 per cent of people are struggling to afford their water bills – yet companies are implementing these huge increases without explaining why, or how the money will be spent.
That is simply not acceptable. Companies can’t keep getting away with obfuscation and vague promises.
The country is facing the very real prospect of a daily shortfall of water by 2050. Water firms now need to build 10 new reservoirs to avoid this shortfall. It is shameful that none have been built in the last 30 years when bosses and shareholders at these water firms were swimming in bonuses and dividends.
A failure to reform water regulation would not be acceptable. The Government cannot stand idly by and allow water firms and regulators to continue as they are.