The recommendations set out in the report of the Independent Water Commission yesterday have been broadly welcomed by organisations across the wider water sector.

In a statement issued by Ofwat yesterday, a spokesperson said:

“The Cunliffe Report sets out a new direction for the water sector.

“While we have been working hard to address problems in the water sector in recent years, this report sets out important findings for how economic regulation is delivered and we will develop and take this forward with government. Today marks an opportunity to reset the sector so it delivers better outcomes for customers and the environment. Ofwat will now work with the government and the other regulators to form this new regulatory body in England and to contribute to discussions on the options for Wales set out in the report.

“In advance of the creation of the new body, we will continue to work hard within our powers to protect customers and the environment and to discharge our responsibilities under the current regulatory framework. We will also work collaboratively with all our stakeholders to ensure a smooth transition.”

Environment Agency chief executive Philip Duffy commented:

“There is a great deal in today’s report that the Environment Agency supports.

“It’s a milestone in turning around the water industry. On structure, none of us who have worked in the regulation of the water industry in recent years would defend the current system.

“The brilliant and hard-working officers, scientists and engineers at the Environment Agency know much more must be done to protect rivers and guarantee clean and plentiful water – but too often they lack the means to deliver these aims. Today’s announcement of a merger would help resolve that.

“This is big, bold change. Like all major reforms, it will be vital to get the detail right, to protect vital services and support staff, and it will take time to work through the full implications. That is why I welcome the secretary of state’s plans to consult widely on the detail and we look forward to working with Department for Environment, Food and Rural Affairs on this.

“During this process, our priorities remain to continue delivering our key services, such as drought response and flood protection, and to support our colleagues.

“I will be setting out how the Environment Agency will engage with the changes and answer queries from the staff and public in the coming days.”

Professional and industry organisations have welcomed the recommendation for Ofwat to be abolished as part of the proposal for a new single water regulator.

Institution of Civil Engineers (ICE) has welcomed what it describes as a 'comprehensive and unflinching' report.

Sam Gould, director of policy and external affairs at the Institution of Civil Engineers said,

"The Institution of Civil Engineers welcomes the Water Commission’s comprehensive and unflinching report. Managing complex systems like our water networks requires a systems-based approach, long-term planning, and significant investment.

"The report acknowledges that bills will rise, but services need to improve as a consequence. This is essential for rebuilding public trust in the water industry.

"The commission's report sets out practical reforms: from a new national strategy and regional planning authorities to a single regulator and a stronger focus on maintaining assets and adapting infrastructure for climate change.

"Addressing these complex issues is going to be a big job, and the ICE is ready to support efforts that turn these recommendations into meaningful change."

Civils contractors have welcomed the publication of the report and said that it must herald a ‘reset’ of the sector.

Ed Evans, Director of the Civil Engineering Contractors Association (CECA) Wales, said:

“Rebuilding public confidence in the water sector is essential, and we welcome the Independent Water Commission’s recommendations which are laser-focussed at improving performance, transparency, and environmental outcomes.

“CECA members stand ready to deliver the infrastructure upgrades that will be necessary to achieve these goals – from modernising waste water networks, to improving flood resilience, to delivering the schemes that ensure the resilience and reliability users expect.

“We look forward to working with the UK and Welsh Governments to ensure that reforms to the water sector are matched with long-term certainty of investment, streamlined planning processes, and close collaboration between regulators, water companies, and the civil engineering supply chain.”

However, he cautioned that to succeed, the roadmap must be matched with long-term certainty of investment, streamlined regulatory processes, and close collaboration between government, regulators, water companies and the supply chain.

“With the right conditions in place, our industry can deliver the step-change in water infrastructure that the public expects, while supporting economic growth, creating jobs, and delivering the environmental outcomes UK businesses and communities deserve.”

A statement issued by Water UK, the body which represents all the UK water companies, said:

“Everyone agrees the system has not been working. Today is a major moment and this fundamental change has been long overdue. These recommendations should establish the foundations to secure our water supplies, support economic growth and end sewage entering our rivers and seas.

“The Independent Water Commission has written a comprehensive, detailed review of the whole sector, with many wide-ranging and ambitious recommendations. We now need some time to consider the detail and understand the implications.

“Crucially, it is now up to Government to decide which recommendations it will adopt, and in what way, but the Commission’s work marks a significant step forward.”

The Association for Consultancy and Engineering (ACE) described the review as a direct response to “a catalogue of pollution cases, financial difficulties, mismanagement and infrastructure failures within the sector, which combined have shaken the public’s trust.”

ACE Group is calling on Government to embed firm recommendations on driving resilience, enabling innovation, supporting supply chain capacity, speeding up delivery and the capability of water companies to roll out large infrastructure projects into law at the earliest opportunity.

Director of Policy at ACE Group, Marie-Claude Hemming, commented:

“ACE Group has long argued that the UK’s water sector is fundamentally broken, still driven by cycles of boom and bust alongside challenging business models, a lack strategy and pipeline visibility.

“The publication of the Cunliffe review highlights that it really is now time for change. Trust has been broken and we all have a part to play in its restoration.

“This cannot be done in isolation. While we urge the government to implement the recommendations of this independent review as soon as possible, we must all be cognisant of big decisions ahead.

“Primarily, it is no longer possible to continue with the current approach, whereby the industry is deprived of necessary investment - does not drive economic growth and the longer-term environmental outcomes future generations deserve.

“We need honest conversations about cost and the finance models needed to deliver the world class water infrastructure society expects.

“ACE Group urges Government not to shy away from difficult decisions and seize the opportunity to deliver this once in a generation reform to our water sector."

The Rivers Trust said the review of the water sector provides a very clear-eyed analysis of its key failings: lack of a systems approach; too many siloes and plans; lack of attention to polluters other than the water companies; short-term, blinkered planning; weak, confusing and conflicting regulations; poor strategic direction from government; too much focus on keeping customer bills low historically; and an absence of a clear pathway to delivery of plans.

Mark Lloyd, Chief Executive said:

“Many people will have wanted this report to go further and for it to be allowed to consider nationalisation of the water industry. This is understandable. However, I believe that the recommendations in this comprehensive report, if implemented by government, would lead to a dramatic improvement in the water environment and far more cost-effective delivery. We applaud the Commission and Sir Jon on the report and urge government to implement the recommendations and to act as fast as possible to revive our rivers before they get worse.”