Skip to content
Tuesday 25 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE · FR
MorningWire

European business, markets and politics

FTSE 100
10,863.27
+0.08%
DAX
26,290.92
+0.71%
CAC 40
8,478.31
+0.30%
STOXX 50
6,474.62
+0.41%
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
More
GermanyFranceEU InstitutionsCompetitionPublic AffairsBankingTechnologyEnergy
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Regulation
  • Politics
  • Opinion
  • DE
Tuesday 20 January 2026 1:02 am  |  Updated:  Monday 19 January 2026 8:11 pm

Water firms to get ‘MOT checks’ in regulatory overhaul

By: Simon Hunt

City Editor

Add as a preferred source on Google
Macquarie is to invest £1.2bn into Southern Water in a move that could prevent a breach of its regulatory license.
Former Southern Water boss charged with conspiracy to defraud

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.”

Read more

Thames Water faces fresh threat to survival after pensions regulation breach

Thames Water infrastructure with pipes and maintenance workers, highlighting water management efforts in London

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business
  • Regulation

People & Organisations

  • DEFRA
  • Environment secretary
  • Ofwat
  • Thames Water
  • UK Government
  • water companies

Trending Articles

  • Andy Burnham hints at tax rises in Autumn Budget

  • Can debt-ridden Morrisons become a Big Four supermarket again?

  • As it happened: Stocks rally; US to unveil ‘economic D-Day’ Iran sanctions

  • Budget 2026: Which taxes will Burnham and Healey hike?

  • Poundland loss doubles as discount retailer nears sale

More from Morning Wire

  • Thames Water faces fresh threat to survival after pensions regulation breach

    Water
    Thames Water infrastructure with pipes and maintenance workers, highlighting water management efforts in London
  • Thames Water creditors eye board shake-up if takeover plan succeeds

    Water
    Thames Water infrastructure with pipes and maintenance workers, highlighting water management efforts in London
  • Ofgem warns on grid squeeze after Heathrow data centre approved

    Tech
    Sir Keir Starmer's government has prioritised investment data centres as a major pillar of its plans to boost economic growth.
  • City trading ‘higher than thought’, FCA believes

    Markets
    GettyImages 2211256637 showing a significant event or figure relevant to recent news updates in the business sector
  • Burnham shelves Thames Water administration plans over costs

    Politics
    Thames Water infrastructure with pipes and maintenance workers, highlighting water management efforts in London
  • Britain needs to start designing for drought

    Opinion
    London cityscape from Primrose Hill showing dry, brown grass during drought with River Thames and skyscrapers
  • Ordnance Survey revenue jumps as map maker goes digital

    Markets
    Ordnance Survey has revealed that an increase in demand for its data from financial services firms has helped its revenue near the £200m mark.
  • Britain’s problem isn’t too much Thatcherism, but too little

    Opinion
    Margaret Thatcher smiling outside 10 Downing Street during her tenure as UKs longest-serving Prime Minister in the 20th ce...
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • EU Institutions
  • Europe

Business

  • Markets
  • Business
  • Economy
  • Regulation
  • Competition
  • Public Affairs

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook