Deputy First Minister Huw Irranca-Davies has this week outlined plans to fundamentally reform the way water is managed, regulated and delivered in Wales
Addressing the findings of the Independent Water Commission Report in the Senedd, the Deputy First Minister said this was a ‘once-in-a-generation opportunity’ to reset the water sector and build a better system for Wales.
He told the Senedd that changes would mark a decisive shift towards a more sustainable, fair and transparent water sector that puts people, the environment and future generations at its heart.
“This is a moment to do things differently – and to do them better,” he said.
“Our current water system does not work as well as it should for people or for the environment. People are rightly worried about their water bills and the state of our waterways.
“That has to change. This is a once-in-a-generation opportunity to reset the water sector. A golden opportunity to clean up our rivers and seas, deliver better value for Welsh bill-payers, and build a water system that’s accountable, transparent, and designed in Wales, for Wales.
“We will take the time to get it right, and we will work with partners and the people of Wales every step of the way.”
One of the Commission’s key recommendations is the creation of a dedicated economic regulator for water in Wales, incorporating water system planning functions. The Welsh Government has confirmed it will take this forward.
This new, stand-alone regulator would deliver a more integrated and responsive approach to managing water – strengthening public confidence and supporting long-term investment in infrastructure and environmental protection.
A consultation on the proposed model will be launched later this year to ensure the new regulatory framework is robust, transparent and aligned with Welsh priorities.
The Deputy First Minister confirmed that the Welsh Government will also seek new powers for the Senedd. If agreed, these powers would, for the first time, enable Wales to legislate independently for the water industry – aligning regulatory and planning functions fully within Welsh borders.
The reforms will establish clear national direction and accountability for water management, ensuring that long-term planning – from supply to climate resilience – is consistent with Wales’s wider goals for the environment, health and prosperity.
The Welsh approach will move away from the competition-led model inherited before devolution, towards an ethical, collaborative framework built on sustainability, affordability and fairness.
To maintain stability and public confidence, a shared transition plan will be co-designed with the UK Government, setting out the route to a new water system in Wales. Interim arrangements, including a Strategic Policy Statement to Ofwat and other regulators, will provide clarity during this transition period.
The Deputy First Minister added: “Reforming the water sector is a complex, long-term task – but it’s also an opportunity to create a better water system and show what devolution can achieve.
“By working together – with the UK Government, with regulators and water companies, and with communities across Wales – we can build a system that delivers for our environment, our economy and our people for decades to come.”
The Welsh Government will publish its vision for water reform in Wales later this year, setting out next steps and inviting views from customers, businesses, regulators, and the wider public.
