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People

David Black Stands Down Ahead Of Formation Of New Regulator - David Black, Ofwat’s chief executive of four years and with over a decade of service at the regulator, is to stand down at the end of August. This follows the Government’s announcement that it plans to replace Ofwat with a new, integrated water regulator in line with the recommendations of the Independent Water Commission.

Black shared: “I have been privileged to be able to lead Ofwat over the last four years, during which time we have achieved a huge amount together as a team for customers and the environment. The 2024 price review backed an investment programme of £104bn, along with a further £50bn investment in major new water resources, which will improve service, environmental outcomes and resilience in the years to come. I wish the team every success as they continue their important work.”

Chris Walters, who ran the 2024 price control, is to serve as interim chief executive , leading the organisation and the engagement process to form the new regulatory body. Meanwhile, Helen Campbell, currently senior director of sector performance, has been appointed as executive director of delivery, reporting directly to the Ofwat board. Campbell will oversee the industry’s AMP8 expenditure programme, the development of major projects and work to stabilise Thames Water.

PR24

Enhancement Delivery Plans Must Be Submitted By Tomorrow - Ofwat has set a 12 August deadline for water companies to submit their final Delivery Plans for their PR24 enhancement programme expenditure. This came as the regulator published an update to its Final Determination requirements and subsequent March 2025 guidance on what it expects to see in the Delivery Plans. These plans will show how water companies will deliver their PR24 enhancement programme in relation to price control deliverables and interim milestones, given the vastly increased spend.

Penalties

Ofwat Consults On A £63m Wastewater Enforcement Package For Anglian Water - Ofwat is consulting on accepting a £62.8m enforcement package proposed by Anglian Water to remedy failures in managing its wastewater treatment works and network. This is part of the regulator’s industry-wide investigation into wastewater operations.

Under the package, £57m will be used to tackle complex problems in eight catchment areas and £5.8m to establish a new community fund to offer grants to improve the environment. This will all be funded by the company and its shareholders, not by customers.

Ofwat’s investigation found that Anglian Water failed to operate, maintain and upgrade its wastewater assets adequately to ensure they could cope with the flows of wastewater. Ofwat said the company failed to have in place adequate processes and oversight by its senior management and board to ensure its assets were performing adequately and that it was meeting the legal requirements expected of it.

Yorkshire Water To Pay £900,000 For Discharging Chlorinated Water  - A court has fined Yorkshire Water £865,000 with costs of £35,000 after the Environment Agency prosecuted for a 2017 incident in which a South Yorkshire water treatment works polluted the Ingbirchworth Dike near Barnsley with chlorinated water for almost a month. Yorkshire Water pleaded guilty in February and has just been sentenced. The problem related to the capacity alarm accidentally being set above the overflow pipe level in the chlorine tank, after an inlet valve was repaired. Approximately a million litres per day of chlorinated water was discharged. Chlorine is toxic to fish and other aquatic life.

Governance

Campaigner To Go To Court To Force The Government To Set Out Its SAR Stance - Clean water campaigner River Action has launched a legal challenge over the Government’s lack of explanation about when it will trigger special administration for Thames Water. The group sought a judicial review, arguing the environment secretary has acted unlawfully by failing to have or publish a policy on when he will use his power to ask the High Court to put Thames in the Special Administration Regime (SAR), given there is a “legal mechanism to take action, serious breaches by Thames Water, rising harm to customers and rivers, and calls from the Independent Water Commission for a clearer policy”.

River Action said: “We believe that special administration represents the most effective and immediate means of addressing the failures within the water industry. We see special administration as the first step toward meaningful and necessary systemic reform including providing the opportunity for a shift to a public benefit model of water ownership, governance and financing, of the type seen successfully implemented across Europe. We are calling for the urgent use of special administration procedures for Thames Water as a tool to stabilise and reset using public benefit principles, with other failing water companies to follow as necessary.”

Environment

WFD Prospects Divide Opinion  - The Water Framework Directive (WFD) is masking improvements to freshwater biodiversity – including the richness of invertebrates, plants, fish and algae in rivers over recent decades. That’s according to the UK Centre for Ecology & Hydrology (UKCEH), which has proposed an alternative standard for monitoring river health. The project team suggested a regular biodiversity audit could be introduced quickly to run alongside the WFD, to more clearly reveal the status of different species at any given location. This should be supported by statistical analysis of associated monitoring data on chemical concentrations, habitat quality, water temperature and flow to clearly identify what elements might be suppressing biodiversity.

However, in a separate report, Green Alliance said whether the Government keeps or weakens the WFD is the test by which the administration should be judged on its commitment to restoring water health. Its Progress since Brexit on the water environment stocktake found the route is diverging between the UK and EU on adherence to legal framework for water quality.

The EU’s European Water Resilience Strategy is rooted in WFD principles, with added forward focus on nutrient pollution, forever chemicals and water scarcity. In England, the Environment Act 2021 sought to drive WFD progress in agricultural pollution, treated wastewater, water use and pollution from abandoned metal mines. But alone it  would not result in full compliance with relevant WFD objectives and does not cover all of the areas where progress is needed, such as urban pollution, chemicals, invasive species and other issues.

Green Alliance added that the biggest risk from the recommendations of the Independent Water Commissions is that "UK and Welsh governments should review the current water legislative framework and amend it accordingly”.

The WFD was introduced by the EU and retained by the UK after Brexit. It requires governments to aim to achieve at least good ecological status for all surface water bodies by 2027, but it is highly likely that this target will be missed. In the last classifications in 2019, just 16% of all water bodies assessed in England (including 14% of rivers) had good ecological status. In Wales, 40% achieved this standard in interim classifications in 2024. If the proposed biodiversity audit were introduced, UKCEH said over 54% of rivers in England would achieve at least good ecological status.

Water Resources

Farmers Hold Inaugural Water Summit - The National Farmers’ Union (NFU) hosted its first ever Water Summit , bringing farmers together with leaders from Water UK, Yorkshire Water, the Environment Agency, Defra and others. Among the issues on the agenda were water scarcity and pollution; climate change and increasingly unpredictable weather patterns; regulatory and financial pressures; and lack of critical investment in water infrastructure – all within the context of national food security.

The NFU reported it has made actionable pledges for farmers to implement on the ground, but needs to collaborate with others to solve the challenges. The pledges concern:

• Robust data – there will be a pilot scheme in a defined catchment to test methodologies for farmers to undertake their own water quality testing, and awareness raising about emerging data and technology-led approaches that can help access water and aid with efficient application.

• Advice and information – the NFU will expand its water quality information package for members, including best practice advice and case studies, signposting to rules and funding initiatives, and information on how to prepare for an Environment Agency inspection. It will also work with members across all regions to support the formation of Water Abstractor Groups and communicate the risks and opportunities relating to future demand for water.

• Partnership working – the NFU will convene industry experts and regulators to develop and roll out nutrient management knowledge exchange and professional development. The NFU reported that an overriding message from attendees was the need for urgent investment in water infrastructure – as well as access to robust data and better planning systems that support slurry storage and on farm reservoirs.