Revamping Britain’s Water Regulation: A Unified Approach for Investor Confidence
A report recommends Britain consolidate its water regulatory system into a single body to enhance investor confidence and protect consumers and the environment. The current fragmented system fails to address financial and environmental requirements effectively. Key proposals include setting investment criteria and controlling water company ownership changes.
The current fragmented water regulatory framework in Britain may soon see significant changes following a recent report's recommendations. The proposal suggests consolidating the system into one governing body to enhance both investor confidence and protection for consumers and the environment.
This reformative suggestion comes after a Labour government's review of the privatised water industry, spearheaded by former Bank of England deputy governor Jon Cunliffe. Cunliffe's report, with 88 recommendations, highlights the ineffectiveness of separate financial and environmental regulation in the sector.
The report also advises the new regulator to set 'minimum capital' requirements for investors and to have the authority to prevent ownership changes that are not in the company's long-term interests. It underscores the need for stability to attract investment, specifically vouching for guidelines on investor returns and penalties for sewage leaks.
(With inputs from agencies.)
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