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Wales will create its own standalone water regulator in a “once-in-a-generation” revamp of the industry aimed at clearing up rivers and delivering better value for bill payers.

Huw Irranca-Davies, the Deputy First Minister, confirmed the Welsh Government will seek new powers as he announced plans to create a system “designed in Wales, for Wales”.

The move follows the findings of an independent water commission report which concluded the system for regulating water in Wales and England needs a reset to restore people’s trust.

Mr Irranca-Davies warned the current regulatory model is an “out of date” legacy from before devolution “rooted in competition” as he outlined a “more ethical, collaborative” approach.

“Things need to change and the truth is, we must do them better,” he said. “At present, our water system does not work as well as it should – or as well as it could – for people or for the environment in Wales.”

The Deputy First Minister told Senedd Members: “The reforms we embark on today will shape the future of water in Wales for decades to come.”

‘No illusions’

But, in today’s (October 21) statement, he warned reforms “will take work and will take time” with laws needing to be passed in the UK Parliament then the Senedd.

Mr Irranca-Davies, who is also climate and rural affairs secretary, cautioned: “We should be under no illusions – the scale, breadth, and complexity of water sector reform is significant.”

He said ministers would create an economic regulator for water in Wales in line with the independent commission’s recommendations.

The report of the commission – led by Sir Jon Cunliffe – warned of “ongoing concerns about Ofwat’s ability to balance the needs of England with the needs of Wales”.

Mr Irranca-Davies said the Welsh Government would consult this year on plans to ensure the new system is fit for purpose and work on a shared transition plan with UK ministers.

He pointed out that Wales already diverts from the approach across the border, with Dŵr Cymru Welsh Water the UK’s only not-for-profit water company.

‘Shameful’

Janet Finch-Saunders, the Tories’ shadow environment secretary, welcomed the statement, recognising the need for legislative change and devolving more powers to Wales.

She called for clarity on the timescales involved and cautioned of cross-border complexity.

Mr Irranca-Davies replied: “We could be looking at several years to bring this through and properly engage and design this system but we need to get this right.”

Delyth Jewell, Plaid Cymru’s shadow environment secretary, warned the benefits of water – a resource Wales is blessed with – too often do not flow back to communities.

Backing the proposed overhaul, she told the Senedd: “The people of Wales have to pay some of the highest bills in these islands and water poverty remains a problem.”

Jane Dodds, the Liberal Democrats’ leader in Wales, pointed out that the new Welsh Water chief executive is set to receive a “shameful” £460,000 a year plus up to £621,000 extra.