UK set to announce 'root and branch' reform of broken water industry

London: Britain announced on Sunday it would create an ombudsman to oversee its broken water sector ahead of a major review which is expected to recommend a reset of how the industry is structured and regulated.

After winning power last year, the Labour government ordered an examination of the privatised water industry in England and Wales, which needs huge investments to fix aging infrastructure and stem record sewage spills into rivers and lakes that have angered the public.

Former Bank of England deputy governor Jon Cunliffe, who has led the review, is due to publish his findings on Monday. Indications are that he will suggest scrapping Ofwat, the water industry's financial regulator.

Ahead of the publication, the government said it would set up a water ombudsman with legal powers to help customers dealing with leaking pipes, incorrect bills or supply problems.

"The water industry is broken," environment minister Steve Reed is expected to say in a speech on Monday, according to his office.

"Today’s final report from Sir Jon Cunliffe’s Independent Water Commission offers solutions to fix our broken regulatory system so the failures of the past can never happen again."

In an interim report in June, Cunliffe recommended overhauling regulation to lower investment risk, merging regulators to give companies clearer direction and new rules on river bathing standards.

His final report comes as Thames Water, the country's biggest water company which is facing 1.4 billion pounds ($1.9 billion) in pollution fines and penalties over the next five years, teeters on the brink of failure with the possibility the government might have to step in.

In his speech, Reed, who promised on Sunday to halve sewage pollution by 2030, was expected to announce "root and branch" reform of the sector's regulation, his office said.

"We are establishing a new partnership where water companies, investors, communities and the government will work together to clean up our rivers, lakes and seas for good," he was expected to say.