The review of the water industry has proposed the biggest improvement of the region in England and Wales since privatization more than 30 years ago.
The writer of the review, Sir John Qunalif, has made 88 recommendations, from the current regulator’s current regulator to strong environmental regulation.
Improvements are deep and wide, and come at a time when the industry has been widely criticized when pipes and sewage spread.
If these proposals are fully adopted, it would be difficult to see how things cannot be better, where the seiber is now – at least and widely derived.
Excessive debt and unfair dividends that endanger the flexibility of some water companies-as the Temes will be addressed by the minimum capital level and powers to block ownership changes if not in the company’s long-term interests.
We already know that water companies will invest more than £ 100bn to upgrade the system over the next five years – and the bills will increase rapidly to pay for it.
Sir John says that there are some “unavoidable facts” including climate change, high environmental standards, a growing population and the infrastructure of aging.
Problems that disturb the industry come from not investing for a longer period, which means “massive” investment is required, so that to catch them, to catch them.
Amount companies can invest, which are allowed to charge them and, for the last 20 years, the bills have increased less than inflation – so really getting cheaper.
It is widely accepted that Ofwat gave priority to keep the bills low on new investment. If consumers want a better water system, someone will have to pay for it.
But what Environment Secretary Steve Reid wants – and Qunlif suggests – a way to ensure that bills do not have to spike so dramatically in the future that they are looking for years – as we are now looking.
By abolishing the ovat, it is paying the price for this.
During the report, there are continuous references to the Telecom Regulator ofcom – which has been seen doing a better work by focusing continuously in better infrastructure over time.
But when you can change the regulator, the reality is that the high future bills are the price of fixing the base of the past.
This report has a lot to digest – which includes compulsory meters on water scheme bodies and public health officials.
It will take time to be effective. But at least the government will be able to indicate the Cunliffe review and insist that it has determined the wheels of changes in speed.
