The Independent Water Commission, launched last October by the UK and Welsh governments, is seeking views in relation to the water sector in England and Wales. A Call for Evidence opened on February 27 and will close on April 23. The public, environment groups, investors and others are invited to share their views on future changes to the water sector, and the findings will inform the Commission’s final recommendations to both UK and Welsh Governments this summer.

However, a “people’s commission” on the future of the water industry will also travel across England and Wales taking evidence from the public and environmental campaign groups fighting sewage pollution. Academics and environmental campaigners who played a significant role exposing the routine dumping of raw sewage into rivers by water companies have set up the inquiry to rival the government-established independent commission, which they say is too limited in its scope and not willing to consider alternative forms of ownership from the privatised model.

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The Independent Water Commission is being led by Sir Jon Cunliffe, who has already stated he will not be looking at renationalisation of the industry during his investigation. However, the People’s Commission believes renationalisation of the water industry is fundamental to upholding accountability. Kate Bayliss, an academic who has investigated how private equity has taken over large parts of English water firms, revealed that in 2022 more than 70% of English water companies were owned by foreign investment firms, private equity, pension funds and businesses lodged in tax havens. The people’s commission has said it will look at international examples, alternative models of ownership, innovation in water services and securing value for the public while protecting rivers, lakes and seas.

The industry was responsible for record sewage pollution last year, and it was recently revealed in a major speech at Manchester’s Mayfield Depot that England and Wales are going to miss the target of having good ecological water by 2027. This month the high court approved a £3bn bailout for Thames Water, which has £17bn of debt, to stave off the company’s collapse. However, customers will have to pay for the emergency loan, which comes with a 9.75% interest rate, in further bill increases, the high court heard. Additionally, the company’s creditors are negotiating a rescue package, as part of which they have appealed to industry regulator, Ofwat, to defer fines related to the company’s performance shortcomings, including water leaks and sewage spills, for several years during the company’s turnaround efforts.