6 August 2025

Kiran Tota-Maharaj, Professor of Water Resources Management and Infrastructure at the RAU gives his comments on the findings and recommendations from The Cunliffe Report. An Independent Water Commission comprehensive review into the water sector regulatory system in England and Wales.

From fragmentation to flow: The UK's water governance for resource resilience & reform

The decision to scrap Ofwat marks a turning point. It reflects a loss of public and political confidence in a murky and fragmented regulatory structure that has failed to prevent environmental degradation.  Years of environmental decline, water pollution, mounting debt and unchecked profiteering have exposed the sector’s fragility. Replacing Ofwat with a centralised regulator could lead to clearer oversight and better enforcement. However, he also warned of transitional uncertainty, the potential for regulatory capture, and investor reluctance if the new body lacks transparency or independence.

Although the reforms are ambitious, they do not address the ownership model that many believe lies at the heart of the water sector’s dysfunction. We must also acknowledge decades of underinvestment, £85 billion in shareholder payouts, and mounting debt.

Yet risks loom large:

  • Transitional uncertainty
  • Vulnerability to political capture
  • Investor caution without transparent, independent governance

Systemic reform or structural reinvention?

The British Government posits that regulatory consolidation, tighter oversight and a £104bn investment (2025–2030) can fix deep-rooted issues. Backed by the Independent Water Commission’s 88 proposals, reforms include:

  • Mandatory water metering
  • Stronger reservoir planning
  • A statutory ombudsman for consumers
  • Ownership scrutiny to prevent short-term profiteering

Still, the sector’s ownership model - blamed for decades of underinvestment and £85bn in shareholder pay-outs - remains untouched. Without structural change, such as public or hybrid ownership, real transformation may prove elusive. The UK Government has ruled out renationalisation due to cost for the moment. 

A blueprint for integrated oversight - an effective regulatory framework must deliver:

  • Unified authority: Overseeing water quality, available water resources quantities, economic and environmental performance
  • Early-intervention powers: Enforcing penalties and supervising utilities before crises arise
  • National strategy: A binding 25-year roadmap setting investment and environmental goals
  • Regional accountability: Empowered water authorities representing councils, health experts and consumers
  • Public health integration: Embedding health protections and oversight by Chief Medical Officers
  • Financial stability: Transparency, minimum capital standards and investor safeguards
  • Consumer advocacy: A strengthened Ombudsman offering legal protection and social tariffs
  • Data transparency: Real-time monitoring of discharges, metering, and environmental trends

Investment priorities for resilience

To ensure climate resilience and water security, urgent priorities should include:

  • Overhauling pipes and treatment systems to cut overflow discharges into natural hydrosystems 
  • Wetlands (engineered/constructed) and Sustainable Drainage Systems (SuDS) to reduce flood risk and improve quality
  • Smart metering and network digitalisation for efficiency and leak detection across distribution systems 
  • Building new water reservoirs and Sustainable Flood Retention Basins (SFRBs) to bolster drought readiness
  • Advancing water reuse technologies from wastewater engineering 
  • Strengthening assets to withstand extreme weather conditions 
  • Tackling agricultural runoff and chemical contaminants
  • Clearing the backlog of critical infrastructure maintenance for water supply, stormwater management, and wastewater reuse.

Professor Tota-Maharaj is the Programme Leader for the MBA in Water Management at the Royal Agricultural University.