His review goes to the heart of one main problem: the sector’s fragmented, overlapping and inflexible regulatory systemOfwat to be abolished in ‘reset’ of water industry regulationWater review in England and Wales: seven key takeawaysFarewell, Ofwat, soon to disappear down the regulatory U-bend. Its leadership has been up against some serious corporate miscreants and boardroom financial engineers over the years, but abolition is the right decision. The original sin – overseen by New Labour – was to allow the leveraged takeover boom of the mid-2000s, which was the point at which regulatory control over the sector started to be lost. The past decade has been about trying to undo the damage, which has only exposed yawning gaps in regulatory knowledge, such as the storm overflow scandal that broke in 2021. A “reset” moment is overdue by about 20 years.Sir Jon Cunliffe’s review goes to the heart of one main problem: the fragmented, overlapping and inflexible nature of a regulatory system that takes in not just Ofwat and the Environment Agency (