Details of England’s water sector reform expected in 2027 — Politico Europe
In the United Kingdom, full details of the reform of England’s water sector may be unveiled only in 2027. Prime Minister Andy Burnham promises to strengthen state control over the industry, but officials are still working on the practical parameters of future ownership models, Politico Europe reports.
A ten-year plan
Ministers are expected to present a ten-year plan for Britain in December. It is intended to define the overall vision, priorities and principles for the development of the water industry. At the same time, the publication’s sources familiar with the discussions say that a significant share of the specific parameters of future ownership models is expected later.
Some key details may be set out in the multi-year review of public spending in 2027, the date of which has not yet been set. Possible budget implications may also be determined then. The Treasury may need billions of pounds if the government decides to bring shares in private water supply companies into state ownership.
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Investor concerns
The Water UK association says that uncertainty is damaging investor confidence. Its chief executive, David Henderson, urged the government to move ahead with reforms proposed last year by former Bank of England deputy governor John Cunliffe, even before a final decision is made on the ownership structure in the industry.
According to Henderson, the rating agency Moody’s may downgrade the entire sector. Water UK believes this would add £40 to the annual bill of every consumer in England and Wales. A government spokesperson stressed that the ten-year plan would also contain some more detailed provisions on reform, but financial issues are usually decided during budget measures.
A bill before Christmas
Environment Secretary Angela Eagle is also due to introduce a water bill to parliament before Christmas. It will provide for closing loopholes that allow excessive bonuses to be paid to water company executives and for granting regional mayors oversight powers. Burnham previously announced that the document would abolish a restriction under which the state could not own more than 3% of the shares in any water company in England. At the same time, he said that he did not intend to fully nationalise the sector, which, according to the government’s preliminary estimate, would cost £100 billion for England and Wales.
