Water firms to get ‘MOT checks’ in regulatory overhaul
Water companies are set to receive “MOT checks” on the quality of their infrastructure in a fresh regulatory overhaul aimed at preventing crumbling pipes, mishandled sewage and unreliable services.
Utilities businesses will receive “health checks” to assess the quality of pumps and pipes by a new water regulator set to be introduced under the government’s water white paper.
Where companies fall short, a new “performance improvement regime” will give the regulator the power to act faster to fix failures in a move aimed at making underperforming water companies recover faster.
Stronger inspection powers, including the new regulator able to conduct ‘no notice’ inspections, are aimed at preventing water companies from “marking their own homework”, while a new “Chief Engineer” will sit inside the new single water regulator to oversee the hands-on checks.
“Water companies will have nowhere to hide from poor performance,” said environment secretary Emma Reynolds, adding: “Investors will see a system built for the future.”
Alongside the new regulatory powers, the reports will also introduce mandatory efficiency labels on items like dishwashers and washing machines in a bid to help households monitor their water use and cut costs, a move which the government has claimed will achieve savings of over £125m on water and energy bills over the next decade.
Water firms under scrutiny
The regulatory overhaul follows a turbulent few months for the water utilities industry in the UK, with homes across the country suffering outages, dozens of major sewage spills and London’s own supplier, Thames Water, coming close to collapse after being weighed down by billions of pounds of debt.
Serious sewage spills jumped 60 per cent to 75 separate incidents in 2025, industry data showed, while thousands of homes in Kent were recently hit by water supply issues following an electrical fault at a local treatment works.
“The government has to give its new regulator the teeth to inspect, talk to workers, and to hold water companies to account,” said Gary Carter, national officer of the GMB union.
“If private companies refuse to invest the money they’ve received through record bill rises – and circumvent bonus legislation – then they’re not fit to be running water infrastructure.”
A government spokesperson said: “Backed by £104bn of private investment over five years, this shift towards proactive maintenance of water company assets will fix failing infrastructure [and] end mismanagement.”