The Welsh Government is commissioning a study on the practical impacts of realigning the boundary for the water industry in Wales – from water company areas, on a wholly or mainly basis, to the national political border.
The research follows on from recommendations made by the Silk Commission on Devolution in Wales set up in 2011 by the UK Government . The Commission on looked at the devolution settlement for water and recommended that:
- powers over sewerage should be devolved to the National Assembly for Wales;
- the boundary for legislative competence for water should be aligned with the national border,
- the establishment of a formal intergovernmental protocol in relation to cross-border issues; and
- The Secretary of State’s existing legislative and executive powers of intervention in relation to water should be removed in favour of mechanisms under the intergovernmental protocol.
The Welsh Government agreed with the findings of the report – the research will take forward work to support the eventual implementation of the recommendations
The work will focus on identifying the implications, costs and benefits for the customers, regulators, the water and sewerage industry and the Welsh and UK Governments, developing a route map for the essential work to be undertaken to deliver the Silk Commission recommendations, and researching and analysing examples of cross border catchment management and water resource management between different Governments.
The study will be required to give particular attention to the impact on customers, water and sewerage industry, regulators and the Welsh and UK Governments, with costs and benefits being analysed and quantified where possible.
The findings from the research will be used to help inform:
- Welsh Government planning for the implementation of the Silk Commission’s recommendations in relation to water; and,
- Welsh Government policy on the realignment of the legislative boundary for water and sewerage competence, and how we seek to mitigate impact on the industry, consumers and regulators.
- Welsh Government thinking in relation to the development of a formal intergovernmental protocol in relation to cross-border issues.
The current devolution settlement for water in Wales is complicated. The National Assembly currently has legislative competence in relation to water supply and water resources management but not in relation in sewerage.
However, in addition to the National Assembly’s legislative competence, the Welsh Ministers have a range of executive powers in relation to water and sewerage, including powers in relation to the regulation of water and sewerage suppliers.
Welsh Ministers have executive and regulatory powers for those water companies whose area is mainly in Wales, while the UK Government has responsibility for water companies whose area is wholly or mainly in England.
Accordingly, Welsh Ministers have executive powers for the appointment areas of Dŵr Cymru Welsh Water and Dee Valley Water, including the areas of England which they serve, but not over the parts of Wales served by Severn Trent Water.
The Assembly specifically now wants to understand the practical implications, costs and benefits of moving the existing regulatory boundary for water from the water company areas (wholly or mainly in Wales/England) to the political border.
The Welsh Assembly would expect to have delivery of the final Report and presentation to Wales Water Forum in May 2015.
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