On the 27 February 2025 the Independent Water Commission lead by Sir Jon Cunliffe (the Cunliffe review) issued a Call for Evidence inviting views on the issues the Commission had identified from evidence it had already gathered, and areas for potential change that the Commission wished to explore. It is a critical time for the sector as we need to both significantly increase investment and rebuild public trust in the sector. The Cunliffe review presents a vital opportunity to set us up for longer term success.
We therefore welcome the opportunity to respond to the Call for Evidence. We have focused our response around six key areas where we think the Cunliffe review should target its recommendations. Our response includes a short paper on each of these areas exploring where we are, where we want to be and how we might get there. If we can address these issues the water sector would be much better placed to deliver for customers, the environment and wider society for the very long term.
The key issues we identify are:
- Asset Health: The water sector needs common resilience standards and regulation needs to recognise and assess asset health to support efficient investment.
- Catchment Management: We need a local approach to managing catchments that recognises the importance of place and scale, supported by a flexible regulation and financing.
- Financial Resilience and Investability: Financial resilience can be restored to the sector under the existing framework which already contains numerous protections. It principally requires the restoration of investor confidence in the regulatory regime by ensuring a fair balance of risk and return.
- Regulator Accountability: Increasing the accountability of the regulators through stronger governance and clearer division of responsibility would strengthen confidence.
- Long-term Planning: The water sector needs more joined-up strategic planning frameworks to effectively manage long-term challenges.
- Mitigating and Adapting to Climate Change: A just transition to Net Zero in the water sector requires the water sector to be treated equally with the wider economy while funding the sector’s adaptation to climate change.