The Welsh Liberal Democrats have called on the incoming Chief Executive of Dŵr Cymru/Welsh Water to rule out supporting water privatisation in Wales, citing his questionable record as Managing Director of Sydney Water in Australia.

The appointment of Roch Cheroux has raised concerns among campaigners and industry observers about whether his record and views align with the not-for-profit ethos of Wales’s largest water utility.

Mr Cheroux previously courted controversy for downplaying the risks of privatising essential services. In a 2021 industry podcast, he stated that the privatisation of Sydney Water would “not change very much” for households, provided regulation remained in place. Independent analysis later found such a sale would have added between £90 and £140 ($174–$269 AUD) to the average household bill each year, while costing taxpayers hundreds of millions in lost revenue.

Critics argue that Mr Cheroux’s relaxed stance on private ownership demonstrates an indifference to the financial pressures facing ordinary families. During his tenure, Sydney Water was embroiled in election controversies, with leaked documents showing ministers exploring “privatisation by stealth.”

Rather than resisting this agenda, critics argue that Mr Cheroux’s comments gave political cover to those who sought to downplay the risks.

The Welsh Liberal Democrats warn that his appointment risks undermining the not-for-profit ethos of Dŵr Cymru at a crucial moment, as the Welsh Government looks set to gain powers over financial regulation of the water industry from Westminster.

The Lib Dems have also raised concerns over other aspects of Mr Cheroux’s record in Australia, pointing towards reports that he was sacked as head of Sydney Water and was accused by a trade union of being responsible for a “toxic” workplace culture.

The party has also renewed its call for action on excessive bonuses and pay within Dŵr Cymru, highlighting that the former CEO received £892,000 in 2021 despite rising water bills for customers and ongoing sewage dumping in Welsh rivers.

The Welsh Liberal Democrats have pledged that if elected to the Senedd next year, they will work to completely reform the financial regulation of Welsh Water, ensuring fairer executive pay and a stronger focus on the public interest.

Commenting, Welsh Liberal Democrat Westminster spokesperson David Chadwick MP said: “It is vital that the incoming CEO of Dŵr Cymru categorically rules out any return to water privatisation in Wales, given his questionable record in Australia.

“Welsh households already face the highest water bills in the UK despite some of the lowest incomes. At the same time, Dŵr Cymru has one of the worst environmental records of any water company, with our rivers increasingly choked by raw sewage.

“It is nothing short of obscene that the head of Welsh Water can pocket a near seven-figure salary while leading what is supposed to be a not-for-profit organisation.

“Every vote for the Welsh Liberal Democrats at next year’s Senedd elections will be a vote to clamp down on excessive executive pay, and introduce proper financial regulation that puts people and the environment first.”

In response, Welsh Water’s Media Relations Manager Lee MacGregor commented: “It is important to point out that all water companies in Wales and England including Welsh Water were privatised in 1989.

“Welsh Water has a different model compared to the other water companies as it is a ‘not-for-profit company’. It is a wholly owned subsidiary of Glas Cymru, a company limited by guarantee, with no shareholders.

“Glas Cymru’s sole purpose is to provide high quality and better value drinking water and environmental services to enhance the well-being of its customers and the communities it serves.

“As a ‘not-for-profit company’ any financial surpluses are reinvested in the business for the benefit of customers,” he added.