Government signals end to ‘business as usual’ for water firms

The Government is to make an unprecedented intervention in the process to set water bills, with Environment Secretary Dame Angela Eagle expected to get involved in the regulator’s next price review.

She said she was “drawing a line under years of failure” and vowed to put an end to “business as usual”.

Dame Angela has written to Ofwat and the water companies setting out her expectations for the sector.

She said: “The water sector is a symbol of everything that went wrong under the old status quo, and today I’m drawing a line under years of failure.

“This is not business as usual.

“I have given the regulators and the water sector clear direction, and I expect them to act on it now, as part of a 10-year journey to a different and more radical system.”

The Guardian reported that she will intervene in the five-year review conducted by regulator Ofwat, which is expected to conclude in 2029 and set bill increases for 2030-35, the first time ministers have become involved in the process.

Prime Minister Andy Burnham has signalled he wants radical reform of the water industry, with a plan to repeal Margaret Thatcher’s ban on public ownership and giving regional mayors greater control.

In the last price review in 2024 Ofwat said it would allow water firms to raise bills by an average of £157, or 36%, over the next five years to help finance investment into crumbling infrastructure.

Dame Angela is also expected to decide on requests by two drought-hit water firms to impose non-essential use bans which could result in swimming pools being closed.

The Telegraph reported a decision will be made within days on the applications by South West Water and South East Water.

As well as restrictions on filling and maintaining swimming pools and ponds, the order would cover activities including car washing, cleaning business premises and watering plants on commercial properties.

Published: 24/10/2026 by Radio NewsHub