Today, the spotlight is on the water sector as Sir Jon Cunliffe, Chair of the Independent Water Commission, faces the Environment, Food and Rural Affairs Committee. This evidence session, scheduled for 10 am, comes hot on the heels of the Committee’s scathing report, ‘Priorities for water sector reform’, published yesterday. The report, a culmination of evidence sessions with major water and sewerage companies, pulls no punches, accusing the sector of having “completely lost sight of its purpose” and operating more like financial services businesses than custodians of a public good.
The MPs’ call for “root and branch reform” is a stark indictment of the current state of affairs. They argue for a major overhaul of incentives and drivers, and a more regulated management of financial incentives for senior executives. The report also takes aim at excessive dividend payments, stating that such payments, when contrasted with poor performance, are “symptomatic of a culture of profiteering over duties to regulators and customers.” The Committee’s stance is clear: dividends should reflect a company’s performance, not just its profitability.
Today’s session will be a chance for MPs to grill Sir Jon on his assessment of their report and his own, the interim report of the Water Commission, published two weeks ago. The Committee will be keen to understand how the Commission’s interim findings were reached and how Sir Jon navigated the constraint of nationalisation being out of scope. They will also probe into the five main problem areas identified by the Commission and compare these with their own findings, particularly on bonuses and debt.
The session promises to be a lively one, with the potential to shape the future of the water sector. The Committee’s report has already sparked debate, with some industry figures pushing back against the criticisms. However, the fact remains that the sector is under intense scrutiny, and today’s session could be a turning point.
The water sector has long been a contentious issue, with debates raging over privatisation, regulation, and performance. Today’s session is an opportunity for Sir Jon to set out his vision for the sector and for MPs to challenge that vision. It’s a chance for both sides to engage in a robust debate about the future of water in England and Wales.
The session will be held in Committee room 6, Palace of Westminster, and can be watched live on parliamentlive.tv. It’s a must-watch for anyone interested in the future of the water sector and the challenges it faces. Expect fireworks, expect debate, and expect a lively discussion about the future of water in England and Wales.