An independent review published in July 2025 has outlined 88 recommendations, in the most important review of England and Wales’ water industry in over 30 years.
The biggest headlines from Sir Jon Cunliffe’s report are his recommendation to scrap water regulator Ofwat, introducing mandatory smart meters, creating a new single regulatory body, and setting up regional planning authorities. Sir Jon said the way the current water landscape is regulated is “fragmented and overlapping.”
Why was this report commissioned?
The Independent Water Commission, led by Sir Jon Cunliffe was set up in response to growing public concern about sewage spills and rising water bills.
Why is Ofwat being abolished?
Ofwat is being abolished because the existing regulatory framework is seen as ineffective. Critics argue it enabled rising bills, environmental harm, and under-investment. The proposed single regulator offers a more unified, robust system aimed at protecting consumers, restoring trust, and cleaning up waterways across England and Wales.
What this means for businesses
For both domestic and business users, water bills could rise by around 30% over the next five years. Alongside this, reforms on the way water is priced, monitored, and regulated are due to change dramatically.
How key recommendations affect businesses
- Scrapping Ofwat
The review recommends replacing Ofwat with other existing bodies with single integrated regulators – one for England and one for Wales. This aim of this is to simplify management, reduce duplication, and ensure regulators take a coherent approach to big issues like supply resilience, pollution, and customer service.
- Mandatory smart metering
Both domestic and business users would be required to have smart meters that track usage in real-time. For water conscious businesses, this could have a positive impact as companies would be charged for the exact amount of water they use.
For high-usage industries, it means higher bills unless organisations take steps to cut usage or improve efficiency.
- Regional water planning
Sir Jon calls for eight new regional water planning authorities in England, and one in Wales. The purpose of these bodies would be to assess local needs, direct investment, and work with developers to make sure there’s enough water and sewage capacity before new homes or business parks are built. This gives everyone more say in local water planning.
- Environmental reforms
The water industry would no longer be allowed to self-report pollution. Alternatively, sewage spills and environmental breached would be monitored by the water regulator. This means businesses should expect tighter environmental oversight in the coming years.
Secure your business water quote today
At Consultiv Utilities, we understand that managing water procurement efficiently and cost-effectively is crucial for your business operations. With years of experience in the utility sector, our team has an in-depth knowledge of the water market. We use this to leverage our expertise to navigate the complex business water environment, ensuring we identify any opportunity for savings and efficiency.
Contact us today to enquire about a business water quote:
An independent review published in July 2025 has outlined 88 recommendations, in the most important review of England and Wales’ water industry in over 30 years.
The biggest headlines from Sir Jon Cunliffe’s report are his recommendation to scrap water regulator Ofwat, introducing mandatory smart meters, creating a new single regulatory body, and setting up regional planning authorities. Sir Jon said the way the current water landscape is regulated is “fragmented and overlapping.”
Why was this report commissioned?
The Independent Water Commission, led by Sir Jon Cunliffe was set up in response to growing public concern about sewage spills and rising water bills.
Why is Ofwat being abolished?
Ofwat is being abolished because the existing regulatory framework is seen as ineffective. Critics argue it enabled rising bills, environmental harm, and under-investment. The proposed single regulator offers a more unified, robust system aimed at protecting consumers, restoring trust, and cleaning up waterways across England and Wales.
What this means for businesses
For both domestic and business users, water bills could rise by around 30% over the next five years. Alongside this, reforms on the way water is priced, monitored, and regulated are due to change dramatically.
How key recommendations affect businesses water
- Scrapping Ofwat
The review recommends replacing Ofwat with other existing bodies with single integrated regulators – one for England and one for Wales. This aim of this is to simplify management, reduce duplication, and ensure regulators take a coherent approach to big issues like supply resilience, pollution, and customer service.
- Mandatory smart metering
Both domestic and business users would be required to have smart meters that track usage in real-time. For water conscious businesses, this could have a positive impact as companies would be charged for the exact amount of water they use.
For high-usage industries, it means higher bills unless organisations take steps to cut usage or improve efficiency.
- Regional water planning
Sir Jon calls for eight new regional water planning authorities in England, and one in Wales. The purpose of these bodies would be to assess local needs, direct investment, and work with developers to make sure there’s enough water and sewage capacity before new homes or business parks are built. This gives everyone more say in local water planning.
- Environmental reforms
The water industry would no longer be allowed to self-report pollution. Alternatively, sewage spills and environmental breached would be monitored by the water regulator. This means businesses should expect tighter environmental oversight in the coming years.
Secure your business water quote today
At Consultiv Utilities, we understand that managing water procurement efficiently and cost-effectively is crucial for your business operations. With years of experience in the utility sector, our team has an in-depth knowledge of the water market. We use this to leverage our expertise to navigate the complex business water environment, ensuring we identify any opportunity for savings and efficiency.
Contact us today to enquire about a business water quote: Water Procurement Services – Consultiv Utilities
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