The Govt. is committed to closing OfWat & replacing it with a larger agency merging OfWat with the Environmental Agency & the Drinking Water Inspectorate of England & Wales.
The water companies want the process speeded up, so OfWat's decisions do not stretch into the next decade, but the problem is a speedy transition is likely to embed exactly the problems with OfWat that the water firms have exploited to drain (pun intended) the sector of money needed for investment.