The Cunliffe Report has landed like a thunderclap in the UK water sector. It calls for sweeping reform, including abolishing Ofwat and replacing it with a single, more powerful regulator to address systemic failures in water management, environmental stewardship and customer outcomes.
This is no doubt a watershed moment. Reform is urgently needed. It’s no secret that public trust needs rebuilding. Pollution incidents have been dominating the headlines and environmental pressures on water resources are mounting.
At Advizzo, we believe structural reform is essential, but it’s not enough. Lasting change will only happen when customers are engaged and empowered to understand their water use, act on it, trust their supplier and feel part of the solution.
To truly reset the relationship between water companies and the public, reform must start in people’s homes – with transparency, insight and support for everyday behaviour change.
The hidden challenges behind the headlines
Trust in water companies is fragile. According to our 2024 survey of water supplier customers, only 53% consider their supplier a trustworthy source of advice on saving water. Even fewer, just 23%, believe their supplier genuinely wants to help them save money.
Current efforts to encourage efficiency aren’t making a big enough impact. 58% of customers said they had tried to reduce their water use, but only 29% thought it made any difference. Many still dramatically underestimate how much water they use, believing they consume 71 litres per day, which is well below actual levels.
Leaks add to the problem. Over a third (37%) of customers experienced a water leak, yet only 10% said they would contact their water company. Most would attempt to fix it themselves or turn to a plumber or landlord instead.
These findings reveal a stark truth: without clear information and proactive engagement, people are flying blind when it comes to managing their water use.
Why behavioural change must be central to reform
The Cunliffe Report rightly proposes compulsory smart metering and real-time data to tackle water waste and improve transparency. But data alone won’t shift people’s behaviour.
To achieve meaningful reductions in consumption and rebuild public trust, customers need:
- Clear, personalised insights into how much water they’re using and where savings can be made.
- Early alerts for leaks or unusual usage, giving them the power to act before problems escalate.
- Ongoing feedback to see whether their efforts are paying off.
Without these behavioural tools, new regulations risk becoming another layer of policy without tangible results.
Practical steps to build a fairer, more effective water market
Our survey highlights that customers are not resistant to change – they simply lack the information and tools to engage effectively. When asked what features they would value:
- 81% said they would use a personalised Water Home Report showing their consumption patterns.
- 82% wanted real-time leak alerts and were willing to pay an average of £3.40 per month for them.
- Over 80% said they would recommend these features to friends and colleagues.
To turn reform into real-world results, we are strongly recommending embedding these practices sector-wide:
- Mandate home water reports – Ensure every household receives a frequent, standalone, digital, easy-to-understand report about their water use and efficiency compared to peers.
- Proactive leak alerts – Use smart meter data to notify customers quickly and help them act before leaks become costly and wasteful.
- Behavioural performance tracking – Measure how effectively water companies are engaging customers and helping them reduce consumption, not just how much infrastructure is upgraded.
Aligning with the Cunliffe Report’s vision
These recommendations directly support the aims of the Cunliffe Report. They will help restore trust and transparency by providing customers with timely, personalised information they can act on. They will reduce environmental harm through data-driven leak detection and demand reduction, tackling waste at its source. And they will build a fairer market by giving households clearer insights and tailored support, particularly for vulnerable customers – aligning with the report’s proposals for social tariffs and stronger protections.
This isn’t technology for its own sake; it’s about turning regulatory ambition into measurable, customer-focused outcomes that address the root causes of inefficiency and public mistrust.
From policy to people
Structural reform is coming. But to make it meaningful, we must go beyond governance and infrastructure. We believe true transformation will come from helping every household understand their water use, act on it and feel part of the solution.
Our 2024 survey shows the appetite for this change is there. With clear home reports, proactive alerts and smarter performance tracking, the water sector can finally build the trust, transparency and efficiency it has long promised – delivering lasting benefits for people and the environment.