Hurrah! We are going to get a new water regulator. Sir John Cunliffe’s independent water commission has recommended that Ofwat be abolished and replaced with a new body which also incorporates the drinking water inspectorate. It will be yet one more opportunity for a quangocrat to take a plumb job, while Ofwat’s bosses are pensioned off generously, no doubt. But what are the chances of getting rid of Thames Water, Southern Water or any other failing water company?

Water companies which get into financial trouble should be allowed to go bust

That doesn’t seem so likely. Rather, Cunliffe has pitched his report as an attempt to rebuild confidence in the existing water companies. It doesn’t recommend what the government should do when faced with businesses which have mortgaged their assets to pay themselves fat dividends and bonuses, failed to invest properly in new infrastructure – and which then go to the government with a begging........

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