Water Companies, Profits, Leaks & Ownership
The graph above appeared in the Financial Times (13th August).
It looks at privatised water companies in mainland UK . As can be seen most make large profits and most also waste a lot of water through ageing infrastructure that they don’t invest in. Their legal duty is to shareholders although corporate governance should dictate a much more robust approach to investment.
Their failure to invest has led not only to persistent issues with burst water mains but also the current sewage crisis where raw sewage has been pumped into the sea around the UK with Tory Government connivance.
The answer to this is to bring these companies back into public control. Given their poor stewardship they don’t deserve compensation but allowing that this is paid, it still represents not just a sensible but an essential policy in the era of climate change.
No doubt a new Tory leader will focus on so far entirely ineffective regulation. Labour should be pressing for and committing to public ownership
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