Mayors and other local political leaders could be given powers to oversee water companies under plans considered by the government.
Prime Minister Andy Burnham’s plan is to create nine new regional bodies responsible for planning, setting targets and holding water companies to account.
The idea was a key recommendation from Sir John Cunliffe’s Independent Water Commission, published last June.
Improving the water industry has been Burnham’s focus since he came to power as water customers in England and Wales continue to face soaring bills.
But until now there have been no details about what that might look like, short of full nationalization.
Some of the ideas in the Cunliffe report were adopted by Sir Keir Starmer’s government, but the recommendations for regional bodies were not adopted.
Although a final decision has not yet been made and the timing of the announcement has not yet been set, officials at the Department for Environment, Food and Rural Affairs are believed to be keen on the idea.
Regional bodies will be given powers to control elements of water companies’ costs and hold managers accountable for bills and wastewater discharges.
Cunliffe’s review said: “This would represent a significant change and ensure that local voices, clients and experts have a stronger voice in company board decisions on investment priorities.”
In addition to the mayor or local government figure, regional bodies could consist of an independent chairman, experts and representatives who would cover affected sectors such as transport and agriculture.
A Whitehall source said it was just one of many ideas being explored to increase public scrutiny of water companies.
A government spokesman said: “Our water industry has been failing to deliver for people for a long time. We are introducing stronger regulation, stronger enforcement and greater accountability to ensure water companies work for the benefit of customers and the environment.”
It comes as the number of complaints lodged by households against water companies with the industry watchdog rose by a record 84% in a year, driven by customer anxiety and confusion over rising bills.
The Consumer Council for Water (CCW) said the annual increase was the highest in its 20-year history and showed “how unhappy” many people are.
Public concern over sewage spills and rising bills, as well as decades of underinvestment in the sector, has been growing in recent years, with climate change and population growth further exacerbating the situation.
