Labor is drawing up plans for a new water regulator as it seeks to tackle public anger over the dumping of raw sewage in Britain’s rivers, lakes and beaches.
Under the proposals, the Labor government would merge most of the environment agency, the pollution watchdog, with financial regulator Ofwat and the drinking water inspectorate to create a new oversight body, according to people familiar with the plans.
The party would also set up a separate flood agency with remnants of the Environment Agency to protect communities in England and Wales in the event of extreme weather events.
With a general election expected next year and Labor showing strong gains in local elections this week, there is a growing focus on the party’s policy agenda.
Public outrage over the practice of water companies dumping raw sewage and rainwater into British waterways has become a political priority in recent months.
The scandal sparked widespread protests and led to beaches being closed for swimming for several days last summer, with a repeat expected this year.
Ofwat regulates the water and wastewater industry in England and Wales, which consists of privatized regional monopolies.
It sets out how much companies can charge customers and the required level of investment in infrastructure, which is reviewed every five years.
The business will retain this organizational model but extend the five-year period to encourage long-term capital planning, according to people familiar with the plans.
Scotland’s water system would remain in the hands of the state while Wales might also be given its own separate settlement with a separate economic regulator.
Labor declined to comment on the plans but Jim McMahon, the shadow environment secretary, has previously criticized the current system of water regulation as “unsuitable for the future”. Ofwat and the Environment Agency have been contacted for comment.
Figures close to the Labor debate said his proposals to reform the regulatory system have not been finalized and may not be announced until the party’s autumn conference in Liverpool.
Labor’s proposed reforms mark a sharp reversal from former party leader Jeremy Corbyn’s pledge to re-nationalize water utilities three decades after they were privatized.
Kat Hobbs, director of We Own It, a pro-nationalization campaign group, said: “Water companies and regulators have had more than 30 years to get this right and they failed.
“We need full public ownership and not more regulatory maneuvering, so the money that households pay goes toward stopping sewage and investing in infrastructure, not paying dividends and CEO salaries.”
Labor’s proposals could spark conflict with unions such as GMB and Unite, which favor nationalization, as the party enters into consultation with its members and other groups through the National Policy Forum.
Therese Coffey, the Tory environment secretary, insisted the government had its own plan that was “fully cost effective and credible”, telling the House of Commons in late April: “Labour says its plans will not affect household bills, but they cannot say how much it will cost. “
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