The Welsh Government is seizing a generational opportunity to fundamentally maintain the nation’s water sector, promising a more sustainable, transparent and fair system for everyone in Wales.
Deputy First Minister Huw Irranca-Davies announced ambitious plans to reform the management, regulation, and delivery of water, following the release of the Independent Water Commission Report. He stressed to the Senedd that the current system isn’t working as well as it should for people or the environment, citing valid public concerns about water bills and the state of waterways.
This push for reform marks a decisive shift away from the inherited, competition-led model towards an ethical, collaborative framework centred on sustainability, affordability, and fairness. It’s a “golden opportunity” to not only clean up rivers and seas but also to deliver better value for Welsh bill-payers through a system that is fully accountable and designed in Wales, for Wales.
A key part of this vision is the creation of a dedicated economic regulator for water in Wales. The Welsh Government has confirmed it will move forward with this central recommendation from the Commission. This new, stand-alone regulator will integrate water system planning, offering a more responsive approach to management, boosting public confidence, and supporting long-term investment in infrastructure and environmental protection.
To ensure the system is robust and aligned with Welsh priorities, a consultation on the proposed new regulatory model will launch later this year.
Crucially, the Welsh Government will also seek new powers for the Senedd. If approved, these powers would allow Wales to legislate independently for the water industry for the very first time. This change would fully align all regulatory and planning functions within Welsh borders, establishing clear national direction and accountability for water management—from supply to climate resilience.
The government acknowledges that reforming the water sector is a complex and long-term endeavour. A shared transition plan will be co-designed with the UK Government to ensure stability and public confidence during the process.
The Welsh Government’s new vision for water reform will be published later this year, inviting views from customers, businesses, regulators, and the wider public, demonstrating the potential of devolution to create a better water system for decades to come.
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