Water sector commission to tackle ‘broken infrastructure’

Almost all options will be considered, including reforming or abolishing the current regulator, Ofwat.

However, the government has ruled out nationalisation of the sector, as too costly and slow.

Instead, the private sector will need to provide the investment needed to upgrade pipes, sewers and reservoirs. But in order to attract private capital into the sector, it is likely that customers will face higher bills.

The BBC understands that Ofwat is already preparing to allow water companies to raise bills by more than originally agreed.

In July, Ofwat provisionally said bills would rise by an average of £19 per year between 2025 and 2030 – totalling a £94 increase, or a 21% rise, over that five year period.

It is unclear by how much more bills will rise instead, but the watchdog will make its final decision at the end of the year.

While the entire sector is facing challenges, the increases previously proposed by Ofwat in July , externalvaried greatly from company to company.

The highest agreed rise of 44%, was for Southern Water, and the lowest was a bump of 6% for Affinity Water.