Earning Back Trust: Becoming Chair of Dŵr Cymru Welsh Water’s Independent Challenge Group

I’ve recently taken up the role of Chair of Dŵr Cymru Welsh Water’s Independent Challenge Group (ICG), an independent body that scrutinises Welsh Water’s activities, challenges its performance, and advocates for its customers.

Given the challenges facing the water sector, I want to explain why I’ve taken on this role, the context we’re operating in, and my priorities for the next five years.

A Sector Under Pressure

Across the UK, public trust in water companies is at an all-time low, driven by concerns over pollution, rising bills, and poor service. In Wales, the challenge is just as stark.

Welsh Water’s not-for-profit model should – in theory – put it in a stronger position to deliver for customers, but it still has a lot to prove.

The latest Price Review (PR24) set the financial framework for the next asset management period (AMP8), for water companies, which runs from 2025 to 2030.

With Ofwat’s Final Determination now confirmed, AMP8 is set to be the most significant investment period in the industry since privatisation, with a clear mandate to improve environmental performance, enhance network resilience, and deliver better service for customers.

As a result, Welsh Water is planning to invest £4 billion over the next five years, with around £2.5 billion going towards environmental improvements, and – while this investment is welcome – the difficult reality is it has to be paid for through customer bills. Ofwat has assessed that a 42% increase in customer bills by 2029-30 is the minimum needed to finance the necessary upgrades and – understandably – customers expect to see meaningful improvements in return.

They rightly want urgent action on river pollution, fewer supply interruptions, and better support for those customers struggling to pay. Welsh Water has committed to significant investment in these areas, but with that comes a responsibility to deliver meaningful improvements.

Holding Welsh Water to Account

The ICG exists to provide independent scrutiny of Welsh Water’s performance. We challenge the company on behalf of customers, communities, and other stakeholders to ensure it delivers on its promises and remains transparent about its progress.

People need to understand how Welsh Water’s work relates to them—how it impacts their daily lives, their communities, and their environment. It’s essential that Welsh Water roots its work in the lived experiences of its customers, ensuring that decisions aren’t just made in boardrooms but reflect the realities of those who rely on its services every day. This means listening to communities, responding to concerns, and being proactive in making improvements that people can see and feel.

This is particularly important given Welsh Water’s current performance. As of 2023-24, it lags behind much of the sector, meeting just five of twelve key performance indicators.

Turning this around requires a clear focus on three key areas over the next five years:

• Improving Operational Performance 

  Customers deserve better service. That means reducing leaks, responding faster to disruptions, and ensuring that day-to-day operations meet a higher standard.PR24 set Welsh Water targets for a 79% reduction in supply interruptions and a 24% reduction in leakage. Meeting these targets will require significant upgrades to infrastructure, better operational management, and greater efficiency across the network. Welsh Water must show clear, measurable progress in these areas if it is to rebuild trust.

• Environmental Accountability 

  People are rightly concerned about the health of Wales’ rivers and seas, and Welsh Water’s recent performance in this area has been disappointing.In response, Welsh Water has committed to reducing storm overflow spills and investing in its ageing infrastructure, something we should welcome.

  This commitment includes an investment of £1.1 billion investment to tackle storm overflows, with a target of a 30% reduction in spills and a 16% reduction in phosphorus discharges to protect Welsh rivers.

  While this is progress, some will certainly argue it doesn’t go far enough. That’s why the ICG will also push for greater transparency on environmental progress and challenge Welsh Water to move faster where possible.

  Climate change is also a clear challenge for the water sector. More extreme weather events—droughts, flooding, and rising temperatures—place additional pressure on water infrastructure, affecting both supply and demand. Welsh Water must be proactive in adapting to these long-term risks, ensuring resilience in the face of an uncertain future.

• Strengthening Social Tariffs and Support for Vulnerable Customers 

  With bills increasing and household budgets under strain, ensuring sufficient support for those struggling to pay is essential.Welsh Water has pledged £73 million to support those struggling to pay through social tariffs. But ensuring this support reaches those who need it most is critical. The ICG will be monitoring how effectively this funding is deployed and ensure Welsh Water is doing all it can to support those in financial hardship.

Managing Expectations – The Scale of the Challenge

The challenges facing the water sector – both in Wales and across the UK – have developed over decades, and they won’t be resolved overnight either.

AMP8 marks a significant increase in investment, but it’s important to be realistic about what can be achieved within the next five years. Upgrading Victorian-era assets, improving water quality, and strengthening operational resilience require long-term commitment, with progress likely extending well beyond 2030.

Ofwat, as the economic regulator, ultimately determines the level of investment Welsh Water can make and the price customers pay. While Welsh Water’s business plan sets out its ambitions, it must operate within the financial parameters Ofwat sets. This means that even with a £4 billion investment programme, tough choices will need to be made about where to prioritise resources to deliver the greatest impact.

Looking Ahead

This is a defining moment for the water sector; a chance to prove it can deliver meaningful change for the communities it serves. PR24 sets the framework, but delivering on its promises is what will ultimately matter.

In Wales, this unprecedented investment gives Welsh Water the opportunity to demonstrate that a not-for-profit model can deliver lasting, tangible benefits. But trust isn’t given, it’s earned, and Welsh Water’s success will be measured by outcomes, not intentions.

Customers deserve clear, honest updates on progress and challenges. Welsh Water must be open about both its achievements and shortcomings; only then can it begin to rebuild trust.

That’s why, going forward, the ICG’s role won’t just be about monitoring performance, but ensuring that customers, communities, and environmental stakeholders have a strong voice in shaping Welsh Water’s decisions.

I’ll be sharing updates as the work of the ICG develops and would very much welcome input from anyone who shares an interest in these issues. If you’d like to take part or share your perspective, you can contact me directly, or the ICG’s secretariat on yoursay@dwrcymru.com.

Together, we can ensure that Welsh Water delivers on its commitments – for customers, for the environment, and for future generations.