The government established the independent water commission promising the biggest shake up of the sector since privatisation 35 years ago.

Sir Jon is expected to recognise the widespread dissatisfaction at multiple failings and will seek submissions from regulators, investors, industry leaders and the public on potential reforms.

He will acknowledge the tensions between different regulators, the increasing demands place on the system by climate and population growth, and making the sector attractive to private investors.

Sir Jon told the BBC the commission’s report would be “as radical as we need to be to reset the system”.

The plight of Thames Water has been one of the most high-profile issues in the sector, with the company struggling with about £19bn of debt.

It recently won a crucial High Court battle to secure a £3bn rescue loan, staving off the prospect of the company coming under government control.

Sir Jon’s review comes as six companies – including Thames – are appealing against decisions by Ofwat to limit bill increases over the next five years.

The commission’s report, expected in June, will not affect that process.

Sir Jon said regulation of the water sector would be a “key area” that the commission will examine.

“Regulation needs to balance the cost to the bill payers with the needs of investment, not just to ensure that we’ve got supply of clean water for the future, but also investment to protect the environment.

“There is probably a bigger role for government, both at the national and at the local level, for giving guidelines for how those priorities should be managed,” he added.

To try to make companies more accountable, the government has brought in a law which gives regulators the power to ban bonuses for water company bosses.

In addition, executives who fail to co-operate or obstruct investigators could face prison sentences of up to two years.