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Labour’s new powers for water customers to hold water companies accountable are being criticized as a ‘stitch-up’ by campaigners. The Consumer Council for Water (CCW) is establishing consumer panels to allow the public to question water company executives and seek redress for issues such as sewage backups and water shortages in England and Wales.
Documents reveal that the CCW has consulted water companies on how they should be held to account by consumers. This comes after ministers promised last year to create water boards for consumers to air complaints, including about water shortages and sewage issues. Large areas of south-east England have faced prolonged water shortages due to treatment center faults, while hosepipe bans persist due to inadequate reservoir investment and sewage discharges into waterways. Water bills continue to rise.
Currently, customers struggle to get companies to respond and compensate them properly. Signing up to the CCW is voluntary for water companies, often leaving local MPs to handle complaints. The new ‘Water Voice’ panels aim to give consumers a say in how their bills are spent and address issues caused by water companies.
This is part of broader reforms announced after the general election, intended to fix the broken water industry and empower customers of monopolies. Documents released under freedom of information laws show the CCW consulted water companies on setting up consumer boards to hold them accountable. Feargal Sharkey, a former musician turned water campaigner, criticized the process, stating that if water companies are involved, customers will not receive redress. He described the scheme as a scandal, calling it equally inept and dysfunctional.
The consumer group reported a 80% increase in complaints in 2025-26, yet no corresponding increase in resources. Andy Burnham, the prime minister, faces pressure to take Thames Water under public control, though this plan has faced delays due to legal challenges from creditors and Treasury concerns over costs. Burnham is also introducing a new water bill with regulatory changes to strengthen consumer protections, replacing Ofwat with a new regulator overseeing water companies. Experts will be appointed to ensure compliance and environmental improvements.
A CCW spokesperson denied that the council consulted water companies on how they would be held accountable, stating they engaged to ensure full industry engagement in the panels. A Department for Environment, Food and Rural Affairs spokesperson emphasized the need for reform, stating the current system is not working in the public interest and introducing an independent water ombudsman to strengthen customer protection and resolve complaints quickly.
Source: The Guardian
