Water regulators and the government have failed to provide a trusted industry and resilient at the same time as bills increase, said the state -care dog.
Public confidence in the water sector has reached a record level, according to a report by the National Audit Office (NAO) on the private industry.
Not since the start of surveillance in 2011, consumer confidence has been at such a level, he said.
At the same time, households face Two -digit invoices Over the next five years.
The last time the bills increased at this rate was just before the global financial crash between 2004-2005 and 2005-06.
Failure
The three water regulators – OFWAT, the Environment Agency and the Inspectorate of Drinking Water – and the Government Department of the Environment, Food and Rural Affairs (DEFRA) played a role in failure, said the NAO, adding that they do not know enough about the state or age of the water infrastructure and the level of financing necessary to maintain it.
Since public services were privatized in 1989, the average replacement rate of water assets is 125 years, said the guard dog. If the current rate is maintained, it will take 700 years to replace existing water dishes.
The NAO said that the government and the regulators had failed to generate sufficient investment in the sector. File peak: PA
Aquatic companies have faced fleeting pipes and Save wastewater outputs in British waterways in recent years, with current application measures Against all wastewater companies.
Although there have been three regulators responsible for water, there is no one responsible for the proactive wastewater inspection to prevent environmental damage, according to the report.
Instead, the regulations are reactive, fines of companies when damage has already occurred.
Financial penalties and awards, however, did not work, because the performance of the water company has not been “consistent or significantly improved” in recent years, according to the report.
“Gaps, inconsistencies, tension”
The NAO asked that this is changing and that a body be responsible for the entire process and assets. Currently, the inspection of drinking water monitors the water that enters a house, but there is no entity that looks at water leaving a property.
Likewise, no organization is responsible for cybersecurity for wastewater companies.
In addition that there are gaps, “incoherent” surveillance responsibilities cause “tension” and overlap, according to the report.
The Environment Agency has no obligation to balance the affordability of customers with its duty to the environment when it assess the plans, said the NAO.
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Critics of companies and investments
The regulators were also accused of not having led enough funding in the water sector.
After having spoken to investors by numerous meetings, the NAO learned that confidence has decreased, which made it more expensive to invest in companies that provide water.
Even investors have found the “complex and difficult” five -year price examination process, according to the report.
The financial resilience of the industry has “weakened”, the offer having reported concerns concerning the financial resilience of 10 of the 16 major aquatic companies.
In particular, the largest supplier in the United Kingdom, Thames Water, has faced an uncertain future and potential nationalization before Secure an emergency loan of 3 billion pounds sterlingAdding to his heap of already massive debt of 16 billion pounds sterling.
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Water companies have excessive expenses, with only a few additional expenses related to high inflation in recent years, which has led to an increase in bills, the NAO said.
Over the next 25 years, companies are planning to spend 290 billion pounds in infrastructure and investment, while Offat estimates that an additional 52 billion pounds will be necessary to deliver up to 30 water supply projects, including nine tanks.
The NAO said that regulators do not have a good understanding of the state of infrastructure assets
What else happens?
From today, a new government law enters into force which could see the water bosses which cover illegal wastewater spills imprisoned up to two years.
Such measures are necessary, said DEFRA, as certain water companies have hampered surveys and have not given the evidence of illegal wastewater discharges, preventing repression.
Meanwhile, the Independent Water (IWC) commission, led by the former deputy of the Bank of England, Sir Jon Cunliffe, carried out the largest examination of the industry since privatization.
What do regulators say and the government?
In response to the report, Ofwat said: “The NAO report is an important contribution to the debate on the future of the water industry.
“We agree with NAO’s recommendations for OFWAT and we continue to progress our work in these areas and to contribute to the wider examination of the CDI of the regulatory framework. We also look forward to the recommendations of the CDI and to work with the government and other regulators to better deliver for customers and the environment. ”
A spokesperson for the Environment Agency said: “We have worked closely with the National Audit Office in the production of this report and we welcome its substantial contribution to the debate on the future of water regulation.
“We recognize the important challenges that the water industry is faced. This is why we will work with Defra and other water regulators to implement the report’s recommendations and update our executives to reflect its results. ”
A spokesperson for Defra said: “The government has taken urgent measures to repair the water industry – but the change will not occur overnight.
“We have placed the water companies under difficult special measures through our Landmark Water Act, with new powers to prohibit the payment of bonuses to pollute water bosses and bring more stringent criminal accusations against them if they break the law.”
Water UK, which represents water companies, has been contacted for comments.