The Environment, Food and Rural Affairs committee of MPs has released a report today, calling for comprehensive reform in the water sector, which they describe as 'failing' and out of touch with the ongoing crisis.

The report emphasizes that water companies are ignoring the pressing issues within the sector, highlighting a significant disconnect between their operations and the needs of the public.

Committee chairman Alistair Carmichael criticized the complex financial structures of water companies, suggesting that they prioritize financial maneuvering over customer service.

The MPs advocate for better management of executive bonuses, arguing that more funds from customers and investors should be directed towards infrastructure and service delivery instead of debt repayment or executive rewards.

To enhance accountability, the report suggests implementing a system of fines and rewards aimed at reducing pollution incidents and promoting responsible ownership in the water sector.

Carmichael pointed out that the current regulatory system has failed to protect customers, the environment, and the financial stability of water companies, necessitating urgent reforms.

In response to the pollution issues affecting rivers, lakes, and seas, a spokesperson from the Department for Environment, Food & Rural Affairs (Defra) acknowledged the crisis and mentioned new legislation banning unfair bonuses for executives.

Water UK has called for fundamental reforms, committing to invest £104 billion over the next five years to improve water supplies and reduce sewage pollution.

The committee's report suggests that the government should consider utilizing its temporary nationalization powers to address failures within the water sector.

Public outrage is growing over how water companies and their executives benefit from the sector amidst ongoing issues, highlighting the urgent need for reform.

Carmichael stressed that environmental protection and reliable water delivery should be the foremost priorities for water companies and regulators, as trust in the sector is at a low point.

Despite initial successes following privatization in 1989, the MPs argue that a complete overhaul of the water sector's culture is now necessary to restore public confidence.