Mayors Could Be Given Powers to Oversee Water Companies

Mayors in England and Wales could be given powers to oversee water companies under a plan proposed by Prime Minister Andy Burnham.

The idea, which was first suggested by Sir John Cunliffe's Independent Water Commission published in June last year, would create nine new regional bodies responsible for planning, setting objectives, and holding water companies to account.

These regional bodies would be given powers to oversee elements of water companies' spending and hold bosses to account over bills and sewage discharges.

The Cunliffe review said: 'This would represent a significant change, and ensure that local voices, customers and experts have stronger authority over companies' boards' decisions on investment priorities. '

As well as a mayor or local government figure, the regional bodies could consist of an independent chair, experts, and representatives to cover affected sectors like transport and agriculture.

A Whitehall source said it was just one among a number of ideas being explored to bring greater public control of water companies.

The Consumer Council for Water said the year-on-year increase in complaints about water companies to the industry watchdog rose by a record 84% in a year, driven by customer concern and confusion over rising bills.

The issue of England's water industry was also debated in Westminster on Monday after more than 200,000 people signed a petition calling for a national referendum on whether the water industry should be returned to public ownership.

Prime Minister Andy Burnham has already committed to giving mayors greater control over public services such as social housing, welfare and education.

He aims to achieve this by allowing mayors more power over budgets in a 10-year plan to transform the economy.

While the MPs who took part in the debate did not agree with the need for a referendum, there was broad consensus that the current model was 'broken', and needed to be fixed.

Future model for water sector debated by MPs