Home / Business and Economy / Water Firms Face "MOTs" Under New Watchdog
Water Firms Face "MOTs" Under New Watchdog
20 Jan
Summary
- Water companies must perform infrastructure health checks to prevent failures.
- A new single regulator will replace Ofwat and existing oversight bodies.
- The reforms aim to strengthen accountability and put failure prevention first.
The government is introducing significant reforms to the water industry, including the abolition of the current regulator, Ofwat. A new, single watchdog will be established with enhanced powers to ensure water companies conduct mandatory "MOTs" or health checks on their infrastructure. This proactive approach aims to identify and rectify issues with pipes, pumps, and sewage treatment works before major failures occur, preventing disruptions like recent widespread water supply loss.
The new regulator will feature a chief engineer, a role absent for two decades, to conduct hands-on infrastructure checks, preventing companies from self-assessing their performance. This move signifies a shift towards tougher oversight and accountability. While Ofwat's formal dissolution may not occur until 2027, the government plans to outline a transition path and introduce new legislation soon. The reforms are a direct response to public discontent over rising bills, sewage pollution, and executive bonuses.
Beyond infrastructure checks, the reforms include dedicated teams for each water company to replace a "one-size-fits-all" approach, allowing for tailored performance improvement regimes. The new watchdog will also have "no-notice" powers to assess security and emergency preparedness. These changes are intended to ensure cleaner lines of accountability for senior executives, similar to measures in the financial sector, ultimately aiming to improve customer service and rebuild public trust.
