The Independent Water Commission’s report – published today – sets out a bold vision for the future of water regulation in England and Wales. It proposes substantial reform to tackle inefficiency, accelerate housing delivery, and bring water regulation more in line with successful frameworks already operating in energy. For the Independent Networks Association (INA), this moment represents both opportunity and challenge.
At the heart of the Commission’s proposals is the long-standing need to streamline the regulatory process for New Appointments and Variations (NAVs). Today’s site-by-site licensing regime has become a bottleneck for development, consuming vast regulatory resources while delaying much-needed infrastructure. The INA has consistently made the case for a national NAV licence—similar to the model in gas and electricity. The Commission has clearly echoed this call.
Such a reform is more than administrative streamlining. It is an enabler of growth. Independent networks already connect around 80% of new homes to gas and electricity. This has been achieved through a competitive, proportionate regime that supports innovation, coordination, and faster delivery. A national NAV licence would allow water regulation to follow suit—unlocking faster and cheaper delivery for housing developers and allowing regulators to focus on where their time is most needed: ensuring quality and safeguarding the environment.
The Commission rightly points to the inefficiency of the current system, with over 70,000 regulator days spent over two years assessing largely duplicative NAV applications. This is time that should be spent addressing the big challenges—improving water quality, reducing leakage, and delivering sustainability targets. Yet, for all the promise in these recommendations, the INA is concerned by one significant risk: the proposal to create a separate economic regulator for Wales. A bifurcated regulatory system may entrench the very issues the Commission seeks to solve. The risk is a two-tier system, with NAVs in Wales facing a different, potentially more complex regime, at a time when consistency and clarity are essential.
Such divergence could hinder growth in Wales and make it more difficult for independent networks to invest and operate efficiently across borders. The Commission acknowledges that the Welsh Government may choose not to pursue NAV reforms—but in doing so, it risks isolating Welsh consumers and developers from the benefits of modernisation.
The broader vision of combining Ofwat, the Drinking Water Inspectorate, and environmental functions into a single, integrated regulator for England is promising. The INA agrees that bold action is needed to unlock investment and accelerate delivery. Integration should help reduce siloes, increase regulatory agility, and improve customer outcomes. However, the new regulator must be built for action, not just alignment. It must support innovation and competition, and it must provide clear, time-bound decisions that enable projects to proceed with confidence.
Importantly, the Commission has also addressed the disproportionate regulatory burden on NAVs in relation to Water Resource Management Plans, Drainage and Wastewater Management Plans, and water testing fees. The INA supports proposals to make these requirements more proportionate and risk-based. As the NAV market grows, these regulations should scale with it—but should not act as barriers in the formative stages.
A further welcome recommendation is the call to consult on a national social tariff scheme. Water affordability remains a major concern, and inconsistent regional tariffs risk unfairness. A national scheme could deliver clearer protections and ensure support is delivered where it is needed most.
In light of these findings, its important the Government and Officials swiftly. Recent statements by ministers, including the Chancellor, have stressed the importance of regulators in supporting growth. A national NAV licence is the clearest possible expression of this principle in action.
These reforms are urgent. Britain’s housing crisis continues. Infrastructure delays remain a critical barrier. Independent networks have the track record, capability, and appetite to deliver. But they need a regulatory framework that enables—not inhibits—their contribution.
Independent Networks stand ready to support government officials and regulators in implementing these reforms. We urge ministers to seize this opportunity and ensure water regulation becomes a partner in growth, not a roadblock.
