The Government has published the Terms of Reference for appointing a Senior Adviser to the Secretary of State at the Department for Food, Environment and Rural Affairs (Defra) on Water Reform Transition.

When appointed, the Senior Adviser will provide advice and support to Defra Ministers and senior officials in the immediate transition period of creating a new regulator and to create a stable platform for reform, ensuring the new regulator is in the best position to be led by the Chair-Designate and Board (once appointed). The role will be accountable to Ministers.

There is an expectation that the appointed candidate will not speak on Defra matters, including around water reforms, to the media or on social media, unless pre-agreed with the Department. 

The adviser will be required to consider the four main objectives for the new water regulator outlined in the Water White Paper as follows:

1. Protect public health and the environment.
2. Ensure water company bills are fair and affordable for customers.
3. Strengthen the water sector’s financial resilience and ability to attract the long-term investment required to meet its ambitions, ensuring that the sector supports economic growth.
4. Provide robust oversight of water companies to maintain and enhance the long-term health and resilience of their infrastructure.

The Senior Adviser will also be charged with coordinating and convening engagement across regulators and industry, bringing relevant parties together to build strong relationships and foster discussions related to transition, including matters such as:

• the upcoming Price Review 2029, to take account of Government’s plans for future reforms, ahead of primary legislative changes, bringing regulators together around a shared plan for the next Price Review.
• risk and risk mitigation strategies.
• the transitional supervision approach undertaken by current regulators to smoothen the transition period, and
• targeted work to identify opportunities to drive down costs of major infrastructure and other burdens that put pressure on consumer bills, whilst protecting environmental and public health standards.

The Adviser will also provide guidance and advice on regulatory structures and the shape of future legislation and assess the existing methods or mechanisms that support innovation in the sector.

The appointment will be fixed and time-limited for 12 months to allow for a period of collaboration and handover with the Chair-designate the Government plans to appoint following the introduction of the water reform bill. There is however a possibility for an extension of an additional 12 months if changes are deemed necessary by Defra.

Whilst the Senior Adviser will not hold executive powers, they are expected to provide advice and support Defra towards ensuring the regulator is best equipped to deliver the key reforms which include:

• Creation of a new direction for water which will provide clear direction to help companies and investors better plan for the long term and take advantage of long-term efficiencies.
• Establishment of a new integrated water regulator to provide greater stability, transparency and an integrated view of both economic and environmental performance.
• Making water a more attractive and reliable sector for investors seeking stable and fair returns.
• Creation of a new independent water ombudsman.
• Further safeguarding drinking water and increasing consideration of public health across the system.
• Taking action to tackle sewer misuse and introducing a single set of stronger and clearer standards and enforcement for agricultural pollution.
• Improving asset health through new mapping and statutory resilience standards, while cutting leakage and increasing water efficiency.

The Adviser will need to build relationships, provide challenge and promote joined up working to agree an approach to the 2029 Price Review and build confidence in the new regulator, the Terms of Reference say.

The Senior Adviser to the Secretary of State on Water Reform Transition forms part of a larger transitional plan for the new water regulator and wider water system. Whilst in post, they will promote joined up working with the existing regulators and work alongside future appointments that will be made to aid the transition.