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Mayors could be given powers to oversee water companies

Nine regional boards would oversee water companies' spending and hold bosses responsible for bills and sewage spills

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Mayors could be given powers to oversee water companies
Mayors could be given powers to oversee water companies. Picture: Getty

By Matilda Collard

Mayors could be given powers to oversee water companies under plans being considered by the Government.

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Andy Burnham is looking at creating nine regional bodies which would take responsibility for planning, setting objectives and holding water companies to account.

These bodies would reportedly have local political leaders sitting on them, alongside public health officials, customers and environmental officials.

They would have powers to oversee elements of water companies' spending and hold bosses responsible for bills and sewage discharges.

Officials in the Department for the Environment are thought to be keen on the idea, although no official decision has been reached yet.

Read more: Government denies scrapping Thames Water nationalisation plans amid 'serious concerns' - as minister insists ’no option is off the table’

Read more: Complaints to watchdog about water firms hit highest increase in 20 years

The Prime Minister has already committed to giving mayors greater control over public services, a goal he aims to achieve by allowing regional officials more power over budgets.
The Prime Minister has already committed to giving mayors greater control over public services, a goal he aims to achieve by allowing regional officials more power over budgets. Picture: Alamy

The latest proposal stems from a key recommendation of Sir John Cunliffe's Independent Water Commission, published in June last year.  

The review said: "This would represent a significant change, and ensure that local voices, customers and experts have stronger authority over companies' boards' decisions on investment priorities."

The Prime Minister has said he wants to see “greater public control” of utilities, but has not yet confirmed what form this will take.

The number of complaints made by households about water companies has spiked by a record 84%

The Consumer Council for Water (CCW) said that the increase was the highest in its 20 year history, pointing to escalating levels of dissatisfaction with the state of the water sector.

The number of complaints made by households about water companies has spiked by a record 84% in a year, driven by customer concern and confusion over rising bills.
The number of complaints made by households about water companies has spiked by a record 84% in a year, driven by customer concern and confusion over rising bills. Picture: Alamy

Liberal Democrat environment spokesman Tim Farron has called for the Prime Minister to go further by bringing water companies into public ownership.

He said: “After a summer of hosepipe bans and sewage being dumped at the first sight of rain, Andy Burnham thinks the answer is more politicians on boards.

“Water companies shouldn’t be controlled by mayors, they should be owned by the people. No-one is asking for more politicians and everyone knows there are better solutions."

A government spokesperson said: "Our water industry has not been working for people for far too long. We're bringing in tougher regulation, stronger enforcement and greater accountability, so water companies deliver for customers and the environment."

The UK remains in a state of drought following a summer of extreme heatwaves, which saw the driest July in 200 years.

The Environment Agency recently warned that 11 reservoirs remain less than half-full despite recent rainfall.

Around 27 million people are still facing restrictions on their water use following the hottest summer in history.

11 reservoirs in the UK are less than half-full
11 reservoirs in the UK are less than half-full. Picture: Getty

The Prime Minister has already committed to giving mayors greater control over public services, which he aims to achieve by allowing regional officials more power over budgets.

He said he would give all mayors of city regions in England a share of income tax for the first time, a feature of his 10-year plan to transform the economy and re-route power away from Westminster.

River Action’s head of campaigns Amy Fairman said the reports are “welcome insofar as they could bring greater regional planning and democratic decision-making into the sector”, but she called on the Government to go further.

She said Thames Water should be placed into a Special Administration Regime, which allows the Government to step in and take control of a failing utility company.

Ms Fairman said: “Nothing fundamental will change until failing water companies are taken out of the greedy hands of private investors.

“Thames Water is teetering on the brink of financial collapse while remaining Britain’s biggest polluter of our waterways.

“The Government should use its existing powers by placing Thames Water into a Special Administration Regime, breathing new life through ownership for public interest and environmental benefit, rather than shareholders.

"This is not about writing a blank cheque. The Government should use SAR now, without major cost to the Treasury or public, and regulators must enforce the law.

“We need urgent and decisive action now. More bureaucracy will not solve the corporate water pollution crisis.”