Campaigners have criticized new powers being given to customers to hold water companies accountable in England and Wales, calling it a "stitch-up." The Consumer Council for Water (CCW), a group representing public interests, is setting up "powerful consumer panels" to allow the public to question executives of their local water companies and seek redress for issues like sewage overflows and water supply problems. However, leaked documents show the CCW has asked water companies to advise on how they would like to be held accountable, raising concerns that the companies may influence the process.
The government had promised to create water boards that would allow customers to raise complaints about water shortages and sewage backups. Many areas in south-east England have faced long-term water outages due to faults at treatment plants, and hosepipe bans have been in place nationwide as water companies have failed to invest in new reservoirs. In addition, companies have been illegally discharging sewage into rivers and water bills have continued to rise. Customers often struggle to get responses from the companies and proper compensation when they are left without water. Participation in the CCW is voluntary for water companies, and complaints are often dealt with by local MPs.
The new "Water Voice" panels aim to give consumers a say in how their water bills are spent and the problems they face with water companies. This is part of major changes announced after the recent general election, aimed at fixing the broken water industry and giving more power to customers of the monopolies that run it. Documents obtained through freedom of information laws show the CCW has been consulting with water companies on how to set up the new consumer boards that would hold them to account. The CCW said it had "set up an industry advisory group to get ideas, feedback and advice from water companies."
Feargal Sharkey, a former musician turned water campaigner, criticized the initiative, calling it a "stitch-up" and stating that if water companies are involved in setting it up, customers will not get any redress. He emphasized that the people who matter most are the customers who have been "extorted" by these companies, and the CCW is asking the "extorters" what should be happening to the victims, calling it an "outrage and a scandal." Sharkey also described the scheme as likely to be "equally inept and dysfunctional."
The consumer group reported a significant increase in complaints, with an 80% rise in 2025-26 compared to the previous year, but no corresponding increase in resources. Prime Minister Andy Burnham is under pressure to take Thames Water under public control as the company is running out of money. However, this plan has faced delays due to concerns about potential legal challenges from the company’s creditors and the Treasury’s concerns about the costs. Burnham is also due to introduce a new water bill to parliament, which will include regulatory changes intended to give new powers to crack down on water companies.
As part of this, the current regulator, Ofwat, will be replaced by a regulator with supervisory powers similar to those overseeing banks after the financial crash. Experts will be appointed to work inside water companies to ensure compliance with the law and environmental improvements. A CCW spokesperson denied that the council consulted water companies on how they would like to be held to account, stating that the CCW engaged with water companies to work through the practicalities of ensuring their full engagement in the panels. For example, giving them enough lead time to ensure their chief executives could attend accountability sessions and making sure action plans were produced in good time.
A Department for Environment, Food and Rural Affairs spokesperson said the government is aware the water industry has not been working in the public interest for too long and is looking at ways to give the public more control and keep bills as low as possible. They emphasized that they are not satisfied with the current system and are introducing a new, independent and impartial water ombudsman to strengthen customer protection and ensure complaints are taken seriously and resolved quickly.
New Consumer Panels for Water Companies Face Criticism and Controversy
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