Mayors and other local political leaders could be given powers to oversee water companies under plans being considered by the government.
Prime Minister Andy Burnham’s plan is to create nine new regional bodies responsible for planning, setting objectives, and holding water companies to account.
The idea was a key recommendation of Sir John Cunliffe’s Independent Water Commission published in June last year.
Improving the water industry has been a focus for Burnham since he took to power, as water customers in England and Wales continue to face steep bill hikes.
But there has been little detail of what that could look like, short of full nationalisation – until now.
Some ideas in the Cunliffe report were adopted by Sir Keir Starmer’s government, however the recommendation for regional bodies was not.
While no final decision has been made, and the timings for any announcement have not been finalised, officials in the Department for Environment Food and Rural Affairs are understood to be keen on the idea.
The regional bodies would be given powers to oversee elements of water companies’ spending and hold bosses to account over bills and sewage discharges.
The Cunliffe review said: “This would represent a significant change, and ensure that local voices, customers and experts have stronger authority over companies’ boards’ decisions on investment priorities.”
As well as a mayor, or local government figure, the regional bodies could consist of an independent chair, experts, and representatives to cover affected sectors like transport and agriculture.
A Whitehall source said it was just one among a number of ideas being explored to bring greater public control of water companies.
A government spokesperson said: “Our water industry has not been working for people for far too long. We’re bringing in tougher regulation, stronger enforcement and greater accountability, so water companies deliver for customers and the environment.”
It comes as the number of complaints made by households about water companies to the industry watchdog rose by a record 84% in a year, driven by customer concern and confusion over rising bills.
The Consumer Council for Water (CCW) said the year-on-year increase was the highest in its 20-year history and showed “just how dissatisfied” many people were.
In recent years there has been growing public concern about sewage spills and rising bills, as well as decades of under-investment in the sector, with climate change and population growth straining it further.