Ofwat chief executive to resign at end of month

The chief executive of Ofwat will stand down at the end of the month, the regulator has confirmed.

Ofwat, which regulates the water sector in England and Wales, said David Black had decided that now was the time to "pursue new opportunities".

Last month, the government said Ofwat will be scrapped to create a new watchdog as part of an industry overhaul to address failings.

Mr Black, who became chief executive in April 2022, said he wished the team "every success as they continue their important work".

Ofwat said an interim chief executive will be chosen "in due course".

Ofwats chair Iain Coucher said Mr Black had worked "tirelessly, to bring about transformational change in the water sector".

The decision comes amid widespread criticism of water companies over leaking pipes and sewage spills, with pollution incidents in England hitting a new record.

A long-awaited report on the industry published last month made 88 recommendations to reform the water sector, including increasing bills sharply to pay for investment, making smart meters compulsory, and scrapping Ofwat.

Following its release, Environment Secretary Steve Reed confirmed Ofwat would be abolished.

The report by Sir Jon Cunliffe, a former Bank of England deputy governor, blamed Ofwat but also the government and water firms for the state of the industry.

Throughout the report, there are continual references to the media regulator, Ofcom - which is seen to have done a better job by maintaining a focus on continual investment in better infrastructure over time.

The commission behind the report heard that Ofwat has faced far too little accountability for its decisions, but also blamed the government for "providing no detailed guidance to help Ofwat balance its objectives and manage trade-offs".

The report also criticised the water firms for marking their own homework on sewage spills - and questioned their payouts to shareholders.

Since being privatised in 1989, water companies have paid out at least £54bn to shareholders, including to overseas investment funds.

"There are legitimate questions about whether companies have, in some cases, issued dividends at the expense of their own financial resilience," the report said.

The government was criticised for limiting the scope of the report to exclude renationalising the water industry in England and Wales.

Reed said at the time that the government did not have the money to nationalise the industry.