UK to Abolish Ofwat, Give New Water Regulator Greater Powers

The UK will abolish the water regulator Ofwat and set up a new watchdog with stronger powers to oversee the industry while enforcing environmental and drinking-water standards, following an independent review of the sector.

The review by Jon Cunliffe — a former Bank of England deputy governor — comes after mounting public anger over sewage spills and rising water bills turned the sector into a hot-button issue. Ofwat, which scrutinizes the performance of private water companies, has been blamed for setting rules that allowed those firms to pile up debt while paying high dividends and neglecting crumbling infrastructure.