The Independent Water Commission chaired by Sir Jon Cunliffe has today published a call for evidence setting out the current issues in the sector and areas for potential change that the commission wishes to explore.

The call for evidence will inform the recommendations the commission makes to the UK and Welsh governments in June 2025.

Under the Commission’s terms of reference, it is tasked with making recommendations to ensure that the water sector works for customers and the environment. This includes by ensuring that:

• there is a strategic spatial planning approach to the management of water across sectors
• the water industry has clear objectives
• the water sector regulatory framework delivers long-term stability and enables the privatised water industry to attract investment, maintain resilient finances and contribute to economic growth

The Call for Evidence is a detailed 293 page document setting out the areas where the Independent Water Commission is seeking views in relation to the water sector in England and Wales.

“The task of the Commission is to stand back from the system and explore, with an open mind, potential changes. Its task is to make recommendations on how to equip and reform the system to meet the challenges of the future and, crucially, restore over time the trust that has been lost. The Call for Evidence is an essential building block in that process,” the evidence document states.

The paper outlines the current issues based on the evidence the Commission has gathered so far, and areas for potential change that the Commission wishes to explore.

• Chapter 1 - outlines a brief history of the water industry since privatisation.
• Chapter 2 - considers the strategic management of water in England and Wales. Wehave one water system that is facing many competing pressures and demands from a range of sectors. The Commission is looking for views and evidence on whether there is a need for coordinated planning between those sectors impacting water, and clear direction on priorities and trade-offs.
• Chapter 3 - looks at the overarching water industry regulatory framework. This includes seeking views on whether changes are needed to the functions and responsibilities of Government and of the regulators.
• Chapter 4 - covers economic regulation and the 5-yearly Price Review process where Ofwat assesses requirements and sets limits on customer bills. This chapter also covers customer protections, financial resilience, investment and competition.
• Chapter 5 - looks at the regulation relating to public policy objectives that the water industry needs to deliver. That includes protecting the environment, delivering clean drinking water, protecting water resources and maintaining and upgrading infrastructure.
• Chapter 6 - looks at water company ownership models. Some water companies arelisted, some are owned by institutional investors, some by private equity, some by infrastructure conglomerates. Dŵr Cymru Welsh Water has a ‘not-for-profit’ model. This chapter compares different models across the UK and internationally.

The Commission is highlighting that options outlined in the paper are a compilation of views from its engagement to date and should not be taken as an indication of the commission’s likely recommendations.

Commenting on the launch of the Water Commission’s call for evidence, the Chair of the Environment, Food and Rural Affairs Committee, Alistair Carmichael MP, said:

“Our select committee is making it a priority to investigate the deep-rooted problems underlying the industry, through our ongoing ‘reforming the water sector’ inquiry. So far, we have questioned the CEOs of five different water companies about their companies’ performance and provision of services to the public and will be continuing our scrutiny of individual companies in March.

“There is huge public concern about the performance of water companies amidst repeated incidents of water outages, sewage pollution and outbreaks of contamination in domestic water supplies.

“I encourage the public to engage with the Water Commission’s call for evidence and to use this opportunity to make their voices heard on the issues involved in cleaning up the unsatisfactory state of the country’s water services.”

The call for evidence consists of 73 questions – stakeholders responding to the call are not required to answer every question – the majority are optional.

The Commission are pointing out that it is not required to read the detailed Call for Evidence document to answer the questions in the online survey on Citizen Space.

The call for evidence runs for 8 weeks and closes on Wednesday 23 April 2025 at midnight.

Click here to download the Call for Evidence documentation

Click here to access the online survey at Citizen Space