Ofwat chief Black to step down ahead of watchdog's abolition

The main enforcement of Ofwat is to measurement down wrong months arsenic Britain’s embattled h2o regulator prepares to beryllium abolished by ministers.

Sky News has learnt that David Black is preparing to permission Ofwat pursuing discussions with its board, led by president Iain Coucher.

The timing of Mr Black's exit was unclear connected Tuesday afternoon, though sources said helium was apt to spell successful the adjacent future.

An authoritative announcement could travel wrong days, according to manufacture sources.

Insiders accidental the narration betwixt Mr Coucher and Mr Black has been nether strain for immoderate time.

Water manufacture executives said that Steve Reed, the situation secretary, repeatedly referred to the regulator's enactment during a gathering past month.

It was unclear connected Tuesday who would regenerate Mr Black, oregon whether an interim main enforcement would stay successful spot until Ofwat is formally scrapped.

The complexity of the impending regulatory shake-up means that Ofwat mightiness not beryllium formally abolished until astatine slightest 2027.

Mr Black took implicit arsenic Ofwat's imperishable brag successful April 2022, having held the presumption connected an interim ground for the erstwhile 12 months.

He has worked for the h2o regulator successful assorted roles since 2012.

If confirmed, Mr Black's departure volition travel with Britain's privatised h2o manufacture and its regulator mired successful crisis.

Water companies are nether expanding unit from Mr Reed, the situation secretary, implicit their grant of enforcement bonuses adjacent arsenic the fig of superior contamination incidents has soared.

The UK's biggest h2o utility, Thames Water, meanwhile, is connected the brink of being temporarily nationalised done a peculiar medication authorities arsenic it tries to unafraid a backstage assemblage bailout led by its creditors.

In a reappraisal published past month, the erstwhile Bank of England lawman politician Sir Jon Cunliffe recommended that Ofwat beryllium scrapped.

He urged the authorities to regenerate it with a caller assemblage which would besides incorporated the Drinking Water Inspectorate and sorb the water-related functions of the Environment Agency and Natural England.

Speaking connected the time that Sir Jon's recommendations were made public, Mr Reed said: "This Labour authorities volition abolish Ofwat.

"Ofwat volition stay successful spot during the modulation to the caller regulator, and I volition guarantee they supply the close enactment to oversee the existent terms reappraisal and concern program during that time."

A achromatic insubstantial connected reforming the h2o manufacture is expected to beryllium published successful November with the purpose of delivering a reset of the industry's show and supervision, according to manufacture sources.

A fistful of h2o companies person challenged Ofwat's terms determinations, which successful aggregate outlined £104bn successful spending by the manufacture during the 2026-30 regulatory period.

Anglian Water, Northumbrian Water and Southern Water are among those whose spending plans are present being assessed by the Competition and Markets Authority.

Responding to the Cunliffe study past month, Ofwat said: "While we person been moving hard to code problems successful the h2o assemblage successful caller years, this study sets retired important findings for however economical regularisation is delivered and we volition make and instrumentality this guardant with government.

"Today marks an accidental to reset the assemblage truthful it delivers amended outcomes for customers and the environment.

"Ofwat volition present enactment with the authorities and the different regulators to signifier this caller regulatory assemblage successful England and to lend to discussions connected the options for Wales acceptable retired successful the report.

"In beforehand of the instauration of the caller body, we volition proceed to enactment hard wrong our powers to support customers and the situation and to discharge our responsibilities nether the existent regulatory framework."

Ofwat has been contacted for remark astir Mr Black's future, portion the Department for Environment, Food and Rural Affairs (DEFRA) has besides been approached for comment.