South Devon MP Caroline Voaden has called for regulator Ofwat to be replaced as part of the government’s review of the water industry.

The demand comes as the government announced a new independent water commission aimed at tackling sewage pollution and strengthening the power of regulators. According to reports, the commission might even consider scrapping Ofwat and reforming the Environment Agency.

The move has been billed as the biggest review of the industry since privatisation, but Ms Voaden said it would not solve many of the problems faced by her constituents.

Speaking in parliament, she cited the plight of residents in Kingsbridge, where they often have to wade through raw sewage on the streets when there is heavy rain.

She also highlighted the situation in Totnes, which last year was hit with some 5,280 sewage spills, and this summer’s cryptosporidium outbreak in Kingswear and Brixham, where more than 100 people reportedly fell ill.

She said: “Whilst a review of the industry is welcome, it’s not going to solve many of the problems constituents in Kingsbridge and across South Devon are going to face this winter.

“What we need is far more urgency from the government if we’re to take the immediate steps necessary to reform our water industry. Even before this Commission begins, the government should be getting on with introducing a new regulator with real teeth and power to get hold of these profiteering firms.”

The move follows widespread anger at the increase in the number of sewage spills and bonuses for water company bosses, and despite Ofwat investigating all 11 wastewater companies in England and Wales over their poor performance.

Ms Voaden recently spoke against bonuses for water company executives, quoting a report in the Guardian newspaper saying that South West Water (SWW) increased its bonus pot, from £325,000 to £504,000.

“Year after year, we’ve seen the bonuses paid out to executives rise at nearly the same rate as the sewage their firms dump into our rivers, lakes, and seas,” she said, although she stopped short of calling for the resignation of SWW’s CEO, Susan Davy.

In response, SWW said “no executive took a bonus in 2023/24”, adding that Ms Davy “voluntarily declined her bonus for the second year running”.

The company added that the long term award she received “relates to her work in 2021 and was reinvested immediately into the company”.

Ms Davy waived a £237,000 bonus this year, although the pay increase she was awarded amounted to more than £300,000.

Amid the controversy of bonuses, water companies have said they need to increase bills in order to modernise the network.

SWW recently introduced a trial tariff, which will see 3,500 customers being charged less for their water bills in the winter and about three times more during the summer.

Analysis by the Competition and Markets Authority in 2021 however showed that around a fifth of bills are already going to shareholders and towards paying off debts.