The House of Commons Public Accounts Committee (PAC) is warning that piecemeal regulators appear to be missing in action as failing water sector left to flounder, saying that regulators must provide much more clarity on plans to improve the financial precarity of the sector.

The final report of the Independent Water Commission published today is recommending the creation of a single water regulator for England and a single water regulator for Wales. In England this would replace Ofwat, the Drinking Water Inspectorate and water-environment related functions from the Environment Agency and Natural England. 

Correspondence released by the House of Commons Environment Food and Rural Affairs Committee yesterday evening has raised even more questions for the Chair and CEO of Thames Water to answer about the water company’s financial affairs – and the Committee has now further extended its questions about their recent evidence to Environment Secretary Steve Reed and Ofwat Chief Executive David Black.

The House of Commons Public Accounts Committee will hear evidence in person later today from senior executives at Ofwat, Water UK, CCW, DEFRA and the Environment Agency as part of its current inquiry into water sector regulation.

The Independent Water Commission is calling for wide-ranging and fundamental change to reset the water sector in England & Wales to address ”deep-rooted, systemic and interlocking failures” in its interim findings released today ahead of its final report this summer.

The House of Lords was warned last week that the designation of private equity firm Kohlberg Kravis Roberts (KKR) as preferred bidder would “inevitably multiply problems” for Thames Water.

Water UK, the trade organisation which represents all of the UK water companies, is calling for major reform of the water system in its submission to the Independent Water Commission, chaired by Sir Jon Cunliffe.

The Consumer Council for Water (CCW) is warning that two in five households across England and Wales say they will find it difficult to afford the increases to water bills being proposed by the regulator Ofwat.

Thames Water has today announced a proposed transaction to extend its liquidity runway which includes up to £3 billion of new money in addition to access to cash reserves and debt extensions. Under the terms of the transaction, Thames will have the opportunity to obtain up to £3 billion super senior funding.

The Directors of Thames Water Utilities Holdings Ltd (TWUH) have assessed the fair value of Thames Water as nil, according to Thames Water Utilities Holdings Ltd's Annual Financial Statements for the year ended 31 March 2024 published this morning.