The chief govt of Ofwat is to step down inside months as Britain’s embattled water regulator prepares to be abolished by ministers.
The timing of Mr Black’s exit was unclear on Tuesday afternoon, though sources stated he was more likely to go within the close to future.
An official announcement might come inside days, based on trade sources.
Insiders say the connection between Mr Coucher and Mr Black has been underneath pressure for a while.
Water trade executives stated that Steve Reed, the surroundings secretary, repeatedly referred to the regulator’s management throughout a gathering final month.
It was unclear on Tuesday who would substitute Mr Black, or whether or not an interim chief govt would stay in place till Ofwat is formally scrapped.
The complexity of the approaching regulatory shake-up signifies that Ofwat won’t be formally abolished till a minimum of 2027.
Mr Black took over as Ofwat’s everlasting boss in April 2022, having held the place on an interim foundation for the earlier 12 months.
He has labored for the water regulator in varied roles since 2012.
If confirmed, Mr Black’s departure will include Britain’s privatised water trade and its regulator mired in disaster.
Water firms are underneath growing stress from Mr Reed, the surroundings secretary, over their award of govt bonuses even because the variety of critical air pollution incidents has soared.
The UK’s largest water utility, Thames Water, in the meantime, is on the point of being briefly nationalised by way of a particular administration regime because it tries to safe a non-public sector bailout led by its collectors.
In a evaluation revealed final month, the previous Financial institution of England deputy governor Sir Jon Cunliffe really helpful that Ofwat be scrapped.
He urged the federal government to interchange it with a brand new physique which might additionally incorporate the Consuming Water Inspectorate and soak up the water-related capabilities of the Surroundings Company and Pure England.
Talking on the day that Sir Jon’s suggestions have been made public, Mr Reed stated: “This Labour government will abolish Ofwat.
“Ofwat will stay in place in the course of the transition to the brand new regulator, and I’ll guarantee they supply the precise management to supervise the present value evaluation and funding plan throughout that point.”
A white paper on reforming the water industry is expected to be published in November with the aim of delivering a reset of the industry’s performance and supervision, according to industry sources.
A handful of water companies have challenged Ofwat’s price determinations, which in aggregate outlined £104bn in spending by the industry during the 2026-30 regulatory period.
Anglian Water, Northumbrian Water and Southern Water are among those whose spending plans are now being assessed by the Competition and Markets Authority.
Responding to the Cunliffe report last month, Ofwat said: “Whereas we now have been working onerous to deal with issues within the water sector lately, this report units out essential findings for a way financial regulation is delivered and we are going to develop and take this ahead with authorities.
“Today marks an opportunity to reset the sector so it delivers better outcomes for customers and the environment.
“Ofwat will now work with the federal government and the opposite regulators to type this new regulatory physique in England and to contribute to discussions on the choices for Wales set out within the report.
“In advance of the creation of the new body, we will continue to work hard within our powers to protect customers and the environment and to discharge our responsibilities under the current regulatory framework.”
Ofwat has been contacted for remark about Mr Black’s future, whereas the Division for Surroundings, Meals and Rural Affairs (DEFRA) has additionally been approached for remark.
