Wales to get its own water watchdog after UK review
Wales is set to establish its own water watchdog after the Welsh and UK governments announced plans following a major review of water regulation.
The current regulator, Ofwat, which oversees water companies in both England and Wales, will be replaced.
The Welsh Government will determine if the responsibility should be given to a newly established independent organisation or handled by Natural Resources Wales (NRW).
The Independent Water Commission highlighted the unique nature of Wales’ water system, noting its cultural importance and distinct environmental and legislative framework.
The report emphasises the need for a National Water Strategy for Wales to provide clear priorities and interim targets.
The review also recommends setting up an independent national systems planner to coordinate water management across sectors, including agriculture, which has a higher land use proportion in Wales than England.
It stresses stronger environmental oversight by NRW and updated legislation aligned with Welsh priorities.
Welsh Deputy First Minister Huw Irranca-Davies said he welcomes the report’s recognition of Wales’ unique context and the proposal for a separate economic regulator. He stated the Welsh Government will engage widely to develop arrangements that offer regulatory certainty, investor confidence, and environmental protection.
The report notes that Welsh Water, a not-for-profit company, serves most customers in Wales, with some served by Hafren Dyfrdwy, a smaller private company owned by England-based Severn Trent.
No date has been announced for when these changes will take effect.
The Commission also suggests improving consumer protections, including better customer experience metrics, reviewing social tariff schemes, and creating a mandatory water ombudsman for England and Wales.
Huw Irranca-Davies said: “This is a once in a generation opportunity to reset arrangements created before devolution and is about more than institutional change. There is a golden thread about clarity and direction through the recommendations.”
The Welsh Government will review the findings and work with the UK Government to ensure cross-border cooperation on water management.
The UK Government plans to publish a White Paper on the issue in the autumn.
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