Britain's Water Industry Overhaul: New Regulator, Same Challenges

The UK government is set to establish a powerful regulator for the water industry following a surge in public outcry over sewage spills. Accepting the key recommendation from an independent report, it plans to alleviate pollution fines, preventing company collapses in the debt-laden sector.

The privatized water sector in England and Wales has faced severe criticism for record sewage dumping and high executive payouts. Thames Water exemplifies the crisis, sitting on the brink of nationalization with a daunting £1.4 billion in pollution penalties.

Critics argue that the regulatory overhaul does not suffice, pushing for the entire industry's nationalization. However, the government insists on investment-driven reforms to manage the crisis, indicating readiness for a special administration to handle Thames Water's financial struggles.

(With inputs from agencies.)