Regulation Authority Head, Black, to Depart Prior to the Elimination of Monitoring Body
The water regulator, Ofwat, is facing a significant shake-up as its chief executive, David Black, prepares to step down later this year, and the UK government plans to merge Ofwat with other water regulatory bodies into a new regulator.
David Black, who has been with Ofwat since 2012, took over as the permanent boss in April 2022, following a year as interim CEO. However, as of early August 2025, Ofwat is scrambling to find a temporary chief executive to replace him, with no permanent successor publicly confirmed yet. It's unclear who will replace David Black or whether an interim CEO will be appointed until Ofwat is formally scrapped.
The government's intention to merge Ofwat with the Drinking Water Inspectorate and absorb the water-related functions of the Environment Agency and Natural England reflects a significant reform plan aimed at streamlining water regulation in England. The new regulator is expected to provide leadership during the current price review and investment plan. A white paper on reforming the water industry is expected to be published in November, with legislation to be introduced in 2026, and until then, Ofwat will continue operating and delivering its ongoing activities.
The proposed replacement for Ofwat will also incorporate the Drinking Water Inspectorate and absorb the water-related functions of the Environment Agency and Natural England. This move is part of a broader effort to modernise the water industry in England, which has been mired in crisis in recent years.
The UK's biggest water utility, Thames Water, is on the brink of being temporarily nationalized, adding to the industry's woes. Several water companies, including Anglian Water, Northumbrian Water, and Southern Water, have challenged Ofwat's price determinations, further complicating matters.
Water companies are under increasing pressure from the environment secretary, Steve Reed, over their award of executive bonuses even as the number of serious pollution incidents has soared. Reed has announced that the Labour government will abolish Ofwat, a move supported by Sir Jon Cunliffe, former Bank of England deputy governor.
The Competition and Markets Authority is assessing the spending plans of these water companies, adding another layer of scrutiny to the industry. As the transition to the new regulator unfolds, the water industry will be closely watched for signs of improvement and adherence to the new regulatory framework.
- The impending merger of Ofwat with other water regulatory bodies promises a major shift in the water industry's finance and business landscape, eventually creating a new regulatory body to oversee politics and general news related to England's water sector.
- The UK government's reform plan for the water industry, encompassing the merger of Ofwat, the Drinking Water Inspectorate, and absorbing water-related functions from the Environment Agency and Natural England, is intended to modernize the industry, which has faced crises in recent years and is under scrutiny from multiple fronts, including the Competition and Markets Authority, environment secretary Steve Reed, and the public.
