Campaigners have criticised Labour's proposed new powers for water customers to hold utility companies accountable, describing the initiative as a "stitch-up" after documents revealed that water firms have been consulted on the implementation of these new oversight measures.
The Consumer Council for Water (CCW) is in the process of establishing what the government has referred to as "powerful consumer panels." These panels are intended to allow members of the public to directly question the executives of their local water companies and seek redress for issues such as sewage problems and water supply interruptions across England and Wales.
However, documents obtained under Freedom of Information laws indicate that the CCW has sought advice from water companies regarding how they wish to be held accountable by consumers. The CCW confirmed it had "set up an industry advisory group to get ideas, feedback and advice from water companies" in connection with the new panels.
The establishment of these "Water Voice" panels aims to empower consumers, giving them a direct say on how their water bills are utilised and providing a platform to address problems encountered with water companies. This initiative is part of broader changes announced following the general election, intended to reform the water industry and strengthen customer influence over the monopolistic utilities.
The government had last year pledged to create consumer-led water boards, designed to enable the public to voice complaints ranging from water shortages to sewage backing up into homes. These commitments followed widespread public dissatisfaction with water services.
Over recent years, various regions have experienced significant disruptions. Large parts of south-east England, for instance, have endured multi-day periods without water due to faults at treatment centres. Concurrently, hosepipe bans have been implemented across the country for extended periods, attributed by critics to water companies' perceived underinvestment in reservoir infrastructure. Persistent issues with sewage discharges into waterways also continue, alongside a steady increase in water bills.
Currently, water customers often face considerable difficulty in securing responses from companies or obtaining appropriate compensation when their services are disrupted. Membership of the CCW is voluntary for water companies, and local Members of Parliament frequently become involved in resolving individual complaints.
Feargal Sharkey, the musician turned water campaigner, expressed strong disapproval of the consultation process. "This is a stitch-up," he stated. "If water companies are involved in setting this up customers will not get any redress. The people who are important in all of this are the customers who have been extorted by these companies. The CCW is asking the extorters what should be happening to the victims, this is an outrage and a scandal." He further commented that the scheme sounded as though it would be "equally inept and dysfunctional."
The CCW itself has reported a substantial increase in complaints related to water companies. In the 2025-26 financial year, the organisation received 80% more complaints compared to the previous year, despite no corresponding increase in its own resources to manage this rising demand.
In response to the criticism, a CCW spokesperson refuted the suggestion that water companies were consulted on the nature of their accountability. "It is a complete misrepresentation to suggest that CCW consulted water companies on how they would like to be held to account," the spokesperson said. "CCW has engaged with water companies to work through the practicalities of how we could ensure their full engagement in the panels. For example, giving them enough lead time to ensure their chief executives were able to attend the accountability sessions and making sure action plans were produced in good time."
A spokesperson for the Department for Environment, Food and Rural Affairs (Defra) acknowledged the long-standing issues within the sector. "We know the water industry hasn’t been working in the public interest for far too long," the Defra spokesperson commented. "That’s exactly why this government is looking at how to give the public more control and keep bills as low as possible."
Defra also indicated further reform, stating: "We’re not satisfied with the current system, so we’re also introducing a new, independent and impartial water ombudsman to strengthen customer protection and make sure complaints are taken seriously and resolved quickly. It’s the least the public can expect, and one of our first steps to building a water system that works."
The developments come as Prime Minister Andy Burnham faces pressure to bring Thames Water under public control, amid concerns over the company's financial stability. However, this potential move has reportedly faced delays due to fears among government officials of legal challenges from the company’s creditors should it be forced into administration, alongside Treasury concerns regarding the associated costs.
Mr Burnham is also expected to introduce a new water bill to parliament. This legislation is anticipated to include further regulatory changes aimed at enhancing powers to address water company performance. Proposed reforms involve replacing the current regulator, Ofwat, with a new body possessing supervisory powers akin to those overseeing banks following the financial crisis. This new framework would see experts appointed to work within water companies to ensure compliance with legal obligations and facilitate environmental improvements.
