The decision by the Competition Commission at the end of May to approve the acquisition by South Staffordshire plc of Cambridge Water PLC - the first time it has given its unconditional approval under the water special merger regime – has flagged up some interesting possibilities for future developments in the sector.

Water industry regulator Ofwat has published new guidance and deadlines for the water companies regulatory reporting requirements.

Alan Sutherland, Chief Executive of the Water Industry Commission for Scotland, has struck a note of caution about adopting the structures of other markets to the water sector, warning that "water is not oil, or any of the other commodities that lend themselves easily to trading on spot and futures markets."

The House of Commons Environmental Audit Committee is warning that the Government's strategy to create a green economy is too focused on voluntary action and fails to set a clear trajectory or any time-bound milestones for businesses to achieve. The MPs want the Government to develop minimum sustainability standards with stakeholders and businesses

Ofwat's director of policy and communication Marian Spain has said that opening the water sector up to competition for business customers would result in “a lot less need for regulation on price” and that if water companies can help businesses better “it will help all of us.”

The publication today by UK water industry regulator Ofwat of its Future price limits – statement of principles paper has flagged up the potential for far-reaching changes with significant implications for the way the UK water companies do business in future.

Water industry regulator Ofwat says the water and sewerage sectors need to make a step change in innovation if they are to meet the challenges of ever rising customer expectations, population growth and climate change.