Water company bosses are quick to pat themselves on the back over “excellent” and “thriving” bathing spots in their area.
But when The i Paper invited the chief executives from England’s nine main water firms to join us swimming in one – every single one of them declined the offer. In fact, many have become mysteriously difficult to get hold of. We were flexible about timing and location. Surely the water execs weren’t worried about the idea of swimming in their firm’s own sewage? As part of our Save Britain’s Rivers campaign, The i Paper has been calling on the government to create 100 clean river bathing spots across the country by 2030 – with stricter water quality testing to clean up waterways for swimmers. Progress is being made: there are now 22 official bathing spots in rivers in Britain. However, most of these sites are still not safe for swimming. Of the 15 undergoing regular monitoring, just three have passed water quality testing.
‘He absolutely would… but he’s too busy’
There are more than 600 official bathing sites in the UK, although the vast majority of them are coastal. Two-thirds (66 per cent) are rated excellent, while 21 per cent are good, 6 per cent sufficient and 7 per cent poor. Of those 32 “poor” sites, 12 are in rivers. This is despite CEOs publicly praising the state of their own bathing waters. In response to criticism of sewage spills in Lake Windermere, Louise Beardmore, CEO of United Utilities (£870,000 salary), told MPs last year that the lake has four “excellent” swim spots and a “thriving bathing community”. But when we asked if Beardmore fancied a swim herself, we were told she “is not available”. A week after our original deadline, the water firm’s publicity team eventually offered to send “another senior member” of the company in her place. This unfortunate colleague’s identity remains unknown.
Lawrence Gosden, CEO of Southern Water (£518,000 salary), told the same environment committee hearing that bathing waters in his area have improved “drastically” over the past 30 years. However, when we offered Gosden the chance to join us for a dip, a member of Southern Water’s media relations team said we should speak to the Environment Agency (EA), which is responsible for testing bathing sites, instead. Other CEOs were equally reticent about our invitation. “He can’t accommodate time for this,” a Thames Water representative said on behalf of CEO Chris Weston, who received a £1m pay package in 2024-25 despite overseeing a 34 per cent rise in pollution. “He’s too busy with day-to-day work of the company,” they added. Severn Trent insisted CEO James Jesic (£740,000 salary) “absolutely would take part in river activities”, and is a regular kayaker. “However… ” – yes, the timing just wasn’t quite right. “He’s focused right now on running the business.”
It was a similar story with South West Water’s newly-appointed CEO Keith Haslett. After repeated calls we were eventually told: “Unfortunately Keith will be unable to join for the swim.” Others seemed not to want to discuss our invitation at all. After several days of unanswered calls, Northumbrian Water finally told us: “I can certainly have a look into that for you.” Like the customers of UK water firms who are sick of sewage being illegally dumped in our waterways, we are still waiting. After repeated calls, Yorkshire Water and Anglian Water – whose CEOs Nicola Shaw and Mark Thurston each command pay packets of more than £1m – insisted we would need to send emails and they could consider the request. Despite repeated emails, we never received a reply.
The CEOs of water companies have faced intense scrutiny over large pay packets while overseeing firms that pollute UK waterways with illegal sewage dumping. The regulator Ofwat has moved to block bonuses being paid to CEOs of polluting firms. However water companies have often worked around this by giving “retention payments”. For example, Thurston, of Anglian Water, received a £500,000 retention payment last year in addition to his salary of £593,000 and over £700,000 in payments from Anglian Water’s parent company, bringing his total payment last year to £1.9m.
The bathing spot downstream from six sewage pipes
Many organisations bear responsibility for the poor state of our wild swimming spots. The Environment Agency (EA) is charged with monitoring water quality and the farming industry is also a source of pollution. However, water companies were responsible for more than 145,000 sewage spills at bathing sites in 2025. In last month’s heatwave, firms discharged untreated sewage at 43 different bathing sites for a total of 99 hours, according to Surfers Against Sewage, at a time when thousands flocked to their local beach or rivers.
Community groups that have obtained bathing water status agreed it was helping to clean up their rivers, but that progress is “frustratingly” slow. In December 2020, a stretch of the River Wharfe in Ilkley, West Yorkshire, became the first official river bathing spot in Britain. A stretch of the River Nidd at Knaresborough, North Yorkshire, was designated as an official bathing spot two years ago, but currently has a rating of “poor”. Testing over the past two bathing seasons has found high levels of bacteria such as E. coli and intestinal enterococci, which are present in human and animal faeces. David Clayden, chair of the Nidd Action Group, said there are six combined sewer overflows (CSOs) upstream from the site that discharge untreated sewage into the water. He said gaining bathing water status has pressured Yorkshire Water to take some action. “They have done a lot of work, and they are in the process of planning further work, but it’s not going to happen overnight. It’s a five- or 10-year project to get it improved,” he said.
Despite the pollution, the site remains popular for swimming.
“They’re in there most days, especially in the summer. They’re trying to keep their mouth shut, they’re trying to wash their hands, but of course some people get ill,” Clayden said. Miles Cameron, bathing water manager at Yorkshire Water, said it was investing £10m across all storm overflows within 5km of the bathing spot and £7.5m to reduce the amount of phosphorous going into the river.
“These are complicated infrastructure projects which take time to deliver, but will greatly improve our impact on the river once complete,” he said.
Bathing site in summer, sewage dumping site in winter
Louise Tonkin is part of a group of residents living around Fordingbridge in the New Forest that gained bathing water status for a stretch of the River Avon. “This is the way we can get the river cleaned up, because once it’s tested, then you’ve got the data a) to keep people safer and b) to hit the water companies with,” Tonkin said.
Since gaining bathing status in 2024, the EA and Wessex Water have identified that high levels of E. coli at the site are largely down to animal waste, rather than human sewage. However, Tonkin is frustrated that water quality is only being assessed during the official bathing season that runs from May to September, despite people swimming there year-round. She said another major source of pollution is a combined sewer overflow 200 metres upstream that “operated continuously” between the end of January and start of March this year.
The problem is worse in winter, when groundwater levels are high, which means it doesn’t emerge in the bathing water testing.
Tonkin said she thinks gaining bathing water status for the site has put “pressure” on Wessex Water to bring forward its investment plans, but reducing sewage is a “mammoth problem”. A spokesperson for Wessex Water said: “Our licensed storm overflow operated as designed during the wet winter to prevent flooding in Fordingbridge. We’re upgrading our sewer network in the area to help prevent groundwater infiltration and delivering near real-time river water quality information.” A spokesperson for the Department for Environment, Food and Rural Affairs said: “We are undertaking targeted action at all ‘poor’ bathing waters and joining forces with local partners to improve the water quality.”
How water companies responded
After only two firms – Southern Water and Wessex Water – responded to our original email invitation, we followed up with phone calls to each company … in some cases repeatedly over several fruitless weeks.
Here’s what they said:
Anglian Water
CEO Mark Thurston, £593,000 salary plus £1.27m for retention and other payment.
The firm has described rivers as “the lifeblood of our communities” and vowed to “create more opportunities for everyone to enjoy our region’s rivers”.
Did they accept our invitation? No response to numerous calls.
Northumbrian Water
CEO Heidi Mottram, £768,457 salary, plus £300,000 retention payment.
Mottram previously praised the North East as “having some of the highest standards for water bathing quality”.
Did they accept our invitation? “I can certainly have a look into that for you,” said a representative following repeated calls. We are still waiting.
Severn Trent Water
CEO James Jesic, joined in January 2026 and still received £740,700 in 2025-26.
The firm says its rivers are “already wonderful places to be” and that “people and wildlife can both benefit from the work we’ve done”.
Did they accept our invitation? We were told Jesic “absolutely would take part in river activities”, but “he’s focused right now on running the business”.
South West Water
CEO Keith Haslett, salary unavailable because new to role.
The firm has described “the beautiful blue waters of the South West” as “the region’s pride and joy”.
Did they accept our invitation? “Unfortunately Keith will be unable to join for the swim,” we were told.
Southern Water
CEO Lawrence Gosden, £518,162 salary.
The firm says its region is “home to the South East’s most loved coastal destinations” and it is helping to “protect and improve your bathing waters”.
Did they accept our invitation? Told us to speak to the Environment Agency.
Thames Water
CEO Chris Weston, £875,500 salary plus £99,210 deferred bonus.
The firm says it wants the region’s rivers to be “wonderful places… running clear and teeming with life – natural beauty spots for people to relax and enjoy”.
Did they accept our invitation? “He can’t accommodate time for this,” a spokesperson said on Weston’s behalf.
United Utilities
CEO Louise Beardmore, £870,000 salary plus £1.53m in bonus and retention payments.
Beardmore said her region has “excellent” swimming spots and a “thriving bathing community”.
Did they accept our invitation? We were told Beardmore “is not available”, before later being offered an unnamed colleague to join us in her place.
Wessex Water
CEO Ruth Jefferson, £670,000 salary.
“Enjoy your river, it’s cleaner than it’s ever been, it’s going to get cleaner,” said Matt Wheeldon, Wessex Water’s director of infrastructure, last month.
Did they accept our offer? Told us to speak to speak to the Environment Agency.
Yorkshire Water
CEO Nicola Shaw, £642,000 salary plus £660,000 payment from shareholders.
The firm says it has “bathing water to boast about”, adding: “Thriving coastal resorts and local communities rely on clean bathing water.”
Did they accept our invitation? No response to numerous calls.
*Salary figures for 2025-26 and does not include pension or benefit payments.
Britain’s insolvency laws cannot deal with the aggressive behaviour shown by the companies that control Thames Water, the environment secretary has said, as she confirmed ministers were prepared to take it into public ownership. Angela Eagle told The Guardian she was determined to reform the water industry after being told by Andy Burnham to make it her top priority. But she warned that could mean a change in law to factor in the way in which the US hedge funds that own much of Thames Water have kept it running while seeking a deal to renegotiate its debts.
The battle over Thames looks set to become the first test of the prime minister’s determination to bring Britain’s utilities into public control even in the face of concerted corporate lobbying and the threat of legal action. In her first big interview since becoming environment secretary, Eagle said putting Thames Water into special administration – a likely first step to deprivatisation – could prove more complicated than some activists think. “A lot of people think you can just choose [special administration] … [but] you either are, or you aren’t, insolvent. And whatever people think of Thames at the moment, it isn’t technically insolvent,” she said. “The Water Act didn’t really envisage this kind of behaviour and this kind of corporate presence behaving in particular ways. But we have a water bill coming along, and nothing is off the table. We’ve got a legislative vehicle coming along soon to enable us to do what we decide to do.”
Burnham has repeatedly promised to take public utilities into public control, focusing especially on energy and water. He told The Guardian before becoming MP for Makerfield that he intended to nationalise Thames. The prime minister’s focus on utilities puts Eagle at the centre of much of what he is trying to do in government, including reforming the water industry and cleaning up illegal dumping sites. She is taking part in weekly meetings of the National Drought Group, which is coordinating the response to the country’s fifth drought in three years.
Speaking from Havant Thicket in Hampshire, which is due to be the country’s first new reservoir since 1992, she said the country had become less resilient under previous governments and she would speed up the pace of new infrastructure. “The system has got more clogged up,” she said, comparing the situation with the one she faced as a minister in the governments of Tony Blair and Gordon Brown. “Trying to get anything done from start to finish is now much slower, much more difficult. It seems to somehow be that people always give you loads of reasons why you can’t do anything, rather than [saying] strategically, we need nine reservoirs or this reservoir, or whatever the infrastructure is.” One of her first tasks will be to decide what to do about Thames Water, which is struggling under a £20bn debt pile and has been given a record £122.7m fine for sewage spills and unlawful shareholder payouts.
Labour’s new powers for customers to hold water companies to account are a “stitch-up”, campaigners have said, as utilities firms have been advising on how to implement it. The Consumer Council for Water (CCW) is creating what the government referred to as “powerful consumer panels” so the public can question the executives of their local water company and get redress for problems they face from sewage and water companies in England and Wales. But documents reveal that the CCW has asked water companies to advise on how they wish to be held to account by consumers.
Ministers promised last year to set up water boards for consumers that would allow them to air complaints such as about water shortages and sewage backing up into people’s homes. Large areas of south-east England have faced days on end without water due to faults at treatment centres. Meanwhile, there have been hosepipe bans across the country for months as water companies have failed to invest in reservoirs, and companies continue to dump sewage in waterways. Water bills also continue to rise. Water customers currently find it difficult to get companies to respond and properly compensate them when they are left without water. Signing up to the CCW is voluntary for water companies and it is often left to local MPs to solve complaints.
The new “Water Voice” panels have been established to give consumers a say on how their bills are spent and the problems they face at the hands of water companies. This is part of sweeping changes announced after the general election, aimed at fixing the broken water industry and giving more power to the customers of the monopolies who run the industry. Documents released under freedom of information laws reveal the CCW has been consulting water companies on how to set up the new consumer boards that would hold them to account. It said it had “set up an industry advisory group to get ideas, feedback and advice from water companies”.
Feargal Sharkey, the former Undertones frontman turned water campaigner, said: “This is a stitch-up. If water companies are involved in setting this up customers will not get any redress. The people who are important in all of this are the customers who have been extorted by these companies. The CCW is asking the extorters what should be happening to the victims, this is an outrage and a scandal.” He added: “It sounds like this scheme will be equally inept and dysfunctional.” The consumer group said complaints about water companies were rising. It received 80% more complaints in 2025-26 than the previous year, yet had no increase in resource.
Andy Burnham, the prime minister, is under pressure to take Thames Water under public control as the company is running out of money. However, this plan has faced delays as government officials fear a legal challenge by the company’s creditors if it is forced into administration, and the Treasury is concerned about the costs. He is also due to introduce a new water bill to parliament, which will include the regulatory changes that are supposed to give new powers to crack down on water companies. As part of this, Ofwat will be replaced by a regulator with supervisory powers, similar to the oversight of banks after the financial crash. Experts would be appointed to work inside water companies and ensure they are obeying the law and improving the environment.
A CCW spokesperson said: “It is a complete misrepresentation to suggest that CCW consulted water companies on how they would like to be held to account. CCW has engaged with water companies to work through the practicalities of how we could ensure their full engagement in the panels. For example, giving them enough lead time to ensure their chief executives were able to attend the accountability sessions and making sure action plans were produced in good time.” A Department for Environment, Food and Rural Affairs spokesperson said: “We know the water industry hasn’t been working in the public interest for far too long. That’s exactly why this government is looking at how to give the public more control and keep bills as low as possible. We’re not satisfied with the current system, so we’re also introducing a new, independent and impartial water ombudsman to strengthen customer protection and make sure complaints are taken seriously and resolved quickly. It’s the least the public can expect, and one of our first steps to building a water system that works.”
One of Britain's most troubled water suppliers has called off plans to raise hundreds of millions of pounds from investors amid the ongoing regulatory and political uncertainty engulfing the industry. Sky News has learnt that South East Water aborted immediate plans for a bond issue earlier this week after attracting insufficient demand from prospective backers. Industry sources said that South East Water, which over the last year has become a focus for public and political anger at the sector after leaving thousands of customers without running water, had intended to secure in the region of £200m to fortify its balance sheet.
The company, which recently parachuted in a new leadership team to rebuild its credibility and improve its operating performance, is understood to have told debt investors that the volatile political and regulatory backdrop had contributed to a lack of demand for the new financing. Earlier this year, South East Water was ordered by the industry regulator, Ofwat, to spend more than £30m on improvements in the wake of repeated supply failures. The company serves about 2.2 million customers in Kent. Partly owned by the NatWest Pension Fund, South East Water has debts of about £1.7bn. It is now likely to face questions about how it plans to fund its ongoing operations and infrastructure investment.
A source close to the company said South East Water had adequate liquidity with a backstop facility of several hundred million pounds in place. They added that this week's roadshow amounted to a market-sounding exercise and that the company continued to evaluate options for future debt-raising activity. One source said the abandoned bond issue had been assembled by bankers at NatWest and would have involved borrowing money over a five-year period. The deal, which was not formally launched when the company's board decided not to proceed, was designed to strengthen South East Water's finances two months after it secured £200m of new liquidity that was intended to support future bond issuance.
The chairman and chief executive of South East Water were axed earlier this year after facing incredulity and anger from MPs over their handling of the crisis at the company. It has now installed a new management team, including John Halsall, an experienced and respected water industry figure, as its chief executive. The disclosure of South East Water's proposed debt raise comes amid growing uncertainty about the privatised industry's future. Andy Burnham, the new prime minister, has spoken of his desire for "greater public control" over water companies but has yet to provide further details of his ambition.
The fog hanging over the sector has been most pronounced at Thames Water, which has been teetering on the brink of collapse for more than two years. One option for the government is to place Thames Water, which has more than 15 million customers, into a process called a special administration regime (SAR), a form of temporary state supervision which has never been used before at a water company. Despite reports that this could happen within days of Mr Burnham becoming prime minister, the immediate prospects of such a move have receded as new ministers and officials have digested the financial and operational implications of doing so.
Angela Eagle, the new environment secretary, suggested last week, that Britain's insolvency laws could be amended to make a Thames Water SAR more easily achievable. Although the abandonment of South East Water's bond issue hints at growing investor anxiety about the sector, a number of other water utilities have been able to attract new investment this year - albeit at bargain basement prices. In March, EQT, the Swedish-based investment giant, bought a big stake in the parent company of Yorkshire Water, although the Financial Times reported in July that the deal had taken place at a discount to the value of its regulated assets. The government has signalled plans to adopt the recommendations of a review conducted last year by Sir Jon Cunliffe, which called for the establishment of a powerful new water regulator. However, details of the overhaul, which will include the abolition of Ofwat, remain sparse. South East Water and NatWest both declined to comment on Thursday.
A water company has been fined £900,000 for a sewage leak which led to swimming being banned on a stretch of coastline. United Utilities (UU) Water Ltd admitted five offences over the major pollution incident on Lancashire's Fylde coastline in June 2023. Preston Magistrates' Court heard a pipe collapse at Fleetwood Wastewater Treatment Works led to raw sewage being discharged into the Irish Sea for more than 35 hours. The Environment Agency (EA) said it was an "unacceptable pollution incident which had far-reaching consequences for residents and businesses".
UU said it had immediately accepted responsibility, apologised unreservedly and had taken steps to fix the problems as soon as possible. UU was fined £964,225 in fines and costs after pleading guilty to five environmental permit offences at an earlier hearing. The offences related to incidents between 11 and 22 June 2023 when raw sewage was discharged into the Irish Sea from three coastal pumping stations for more than 35 hours in total over several days. The court heard the pipe, which had only been installed 28 years ago, had been buried much too deeply - about 5m below ground level rather than 2.4m.
The EA said sewage was reported on beaches and in marine recreational facilities including Fleetwood baths. As a result, the EA issued "no bathing" advice across all eight designated bathing waters along the affected coastline, while sampling carried out during the incident by a trained citizen scientist was also indicative of the presence of E. coli. The EA said three shellfish beds were also temporarily closed by the Food Standards Agency (FSA) due to public health concerns.
Communities and businesses along the coast were impacted significantly by the contamination, the EA said, with popular tourist destinations including Blackpool and St Annes among those badly affected. It said in Blackpool alone, summer visitor numbers fell by hundreds of thousands compared with the previous year. An EA investigation found the incident began following the partial collapse of a final effluent pipe at Fleetwood Wastewater Treatment Works, which reduced the amount of sewage the site could receive and caused sewage to back up through the wider system. Following periods of rainfall, sewage was subsequently discharged from three coastal pumping stations at Manchester Square, Anchorsholme and Chatsworth Avenue.
UU's environmental permits set strict conditions on when sewage could be discharged from pumping stations. Further investigation into flow and spill data provided by the company found those conditions had not been met when the spills took place, the EA said. Andy Brown, the Environment Agency's water regulation manager, told BBC North West Tonight the large fine "sent out an important message". He said: "This was an unacceptable pollution incident which had far-reaching consequences for residents and businesses along the Fylde coast. Our investigation found that United Utilities Water Limited discharged sewage outside the conditions of its environmental permits. The company admitted those breaches, and today's record fine reflects the seriousness of the offences and the harm caused."
The court heard UU accepted straight away it was its fault and apologised unreservedly and took steps to fix the problems as quickly as possible. Four hundred staff worked around the clock to repair the damage at a cost of £38m. Since then, UU said it had started to install a state-of-the-art new system in January. It also said it had donated to community projects. Chris Borradaile, from UU, told BBC North West Tonight: "We have committed to the full extent of the pipeline - 1.5km - and that is costing around £66m. Typically that would have taken three years to carry out that sort of construction but we are doing that in 12 months."
Thames Water will have incurred almost £2bn in financing costs and advisory fees over the 18 months to the end of September, adding to concerns about the burden of keeping the UK’s largest water supplier in private hands. The utility — which is fighting the threat of renationalisation under Prime Minister Andy Burnham’s Labour government — will have incurred £1.6bn in gross financing costs between April 2025 and the end of this month, according to its last annual report and projections provided to the FT. The utility also had £235mn in exceptional expenses including advisory, legal and professional fees in the year to the end of March, with the projected cost for the following six months running to about £100mn.
The findings underscore the costs to the heavily indebted utility under its current ownership, with the issue of what to do with Thames likely to prove an early test for Burnham. Thames is in effect in the hands of creditors including US hedge fund Elliott Management and private capital group Silver Point, after its previous owners walked away from the business in 2024 declaring it “uninvestable”. Ministers must decide whether to allow the embattled utility to go ahead with an expensive private restructuring or place it into a Special Administration Regime (SAR) — a form of temporary renationalisation.
Under a SAR, an independent insolvency practitioner would ensure services keep running while the company’s massive debt stack and interest payments are frozen. This would allow cash from customer bills to be diverted straight into sewage and water infrastructure rather than servicing the debt. Ian McNuff, a former adviser to private equity firm Star Capital and water campaigner who provided the projections based on Thames’s accounts, said the figures helped to show the true cost of avoiding government intervention, arguing that creditors have a vested interest in overstating the disruption of a SAR.
The government’s next move has been complicated by legal debates. Angela Eagle, the environment secretary, has previously said that because the utility is not yet “technically insolvent”, triggering an SAR remains legally complex. Ewan McGaughey, professor of law at King’s College London, said that the state could intervene under the Water Industry Act 1991, citing breaches of statutory duties and neglect of infrastructure. “The government has solid legal grounds to take decisive action,” he said.
The cost of temporarily nationalising Thames under an SAR is disputed. Thames’s advisers had estimated that the process would cost the government about £4bn, while others have argued this is too high given the Treasury’s ability to recoup cash and divert interest payments. Thames’s creditors, who have been in talks with Whitehall for more than a year over their formal takeover plan, are working up a revised proposal for regulator Ofwat.
The former secretary of state Emma Reynolds had expressed concerns over a previous offer that involved the creditors injecting £3.35bn of new equity and providing up to £6.55bn in new loan facilities to Thames, while facing a 30 per cent writedown on the value of their debt. Investors had also asked Ofwat to shield the company from certain regulatory penalties for sewage pollution and leakage over the next four years in exchange for a commitment to deliver £800mn to £1bn in asset improvements. After approval by Ofwat, the agreement must undergo a three-month public consultation and receive final sign-off from the High Court.
Thames’s creditors, operating as London & Valley Water Consortium, have indicated they may be willing to offer an additional £2bn bridging loan to prevent the utility’s collapse if the deal is delayed. But they have added that they would need reassurance that the government remains committed to a “market solution”. Thames Water, which receives all its revenues from customer bills, said: “We are working to secure a multibillion-pound recapitalisation in one of the most complex restructurings in UK history. The costs of this are not borne by our customers but by our investors.” London & Valley Water Consortium said: “The costs of the restructuring will not impact customer bills. Creditors have stepped in to cover a significant revenue shortfall which has enabled Thames Water’s record capital investment programme to continue.”
Returning the water industry to public ownership could save £22billion five years, MPs have heard. Labour MP Paul Davies, who led a Westminster Hall debate, said ditching the “disastrous” privatised model would also go some way to restoring the public’s faith in the sector. It comes amid growing angry about the stare of the industry since it was sold off by Tory PM Margaret Thatcher, since when tens of billions have been dished out to investors and owners - most abroad. Yet over that time, customer bills have soared and the country has been left with a sewage scandal. The scale of the controversy was hammered home in hard-hitting Channel 4 factual drama Dirty Business earlier this year, which included the fight by campaigners Ash Smith and Peter Hammond to expose the truth about the scale of sewage pollution.
Mr Smith is behind a petition, which now has more than 200,000 signatures, to hold a binding national referendum on whether the water industry should be returned to public ownership. MPs lined up to debate the issue, and to highlight failures by water companies in their areas. Mr Davies, Labour MP for Colne Valley, said: “For too long, our water industry has been in the hands of shareholders, rather than the public who pay and rely on its delivery. There is huge frustration out there.” He went on: “The private model for water has been far from a success,. It has been an economic, environmental and public health failure. Private companies have paid out around £83billion in dividends, while loading the companies with debt. And crucial infrastructure has been left to fail. Not a single new reservoir has been built since 1992. And water companies have seen the waste of around three billion litres of water a day through leaky pipes.”
Mr Davies said he welcomed measures announced by the Labour government to tackle failures with the current model, he warned they did not go far enough. “I am concerned that the government has failed to address the fundamental error of the past four decades,” he told fellow MPs. A Yougov survey has found that 82% of Brits feel the water industry should be publicly owned. up from 59% in 2017. “Public ownership would mean that £22billion earmarked for shareholder returns and interest over next the five years goes instead to repairing our broken water infrastructure, paying off debts and letting water company staff do their job properly,” Mr Davies said. “It beggars belief to see the money is being siphoned off from the water sector into private hands, and many shareholders not even in the UK, whereas we see our citizens suffering really badly.” He highlighted examples from other countries where water has been brought back under public control including Paris in 2010, which led to a range of social subsidies being introduced.
It comes as private creditors for crisis hit Thames Water try to prevent the debt laden company coming under a form of temporary nationalisation. Fleur Anderson, Labour MP for Putney: “My constituents are very angry about Thames Water. They are paying more but getting less because of the model we have,” that the company needs to be put into special administration.” Martin Wrigley, Liberal Democrat MP for Newton Abbot, called for water companies to be mutually owned. He also warned regulator Ofwat “does not have the teeth” to tackle failures by the water companies. Mr Wrigley’s constituency covers Dawlish, which also featured in Dirty Business after the death of eight year-old Heather Preen in 1999. Her mother, Julie Maughan, believes she contracted E. coli after coming into contact with raw sewage on the beach. Clive Lewis, Labour MP for Norwich South, claimed the call for the return of water to public ownership crossed the political divide. "This taps into a deep. public anxiety about the future of this country and this planet," he said.
Water Minister Emma Hardy said: “All of the failures that people have mentioned are outrageous. All of the people who have become sick, the impact it's had on places that people love...it is horrific we have ended up in this situation." She said Andy Burnham becoming PM would "open up options that were previously not available - more things are on the table. We are working through things right now across government. "We are looking to bring forward a bill that really does meet that appetite for change. We are looking at all of the sector and what can be done across it." Ms Hardy said the industry needed "significant reform to give people and places greater control and make the water industry work for them again."
Get on with it, then. The shares are monetarily worthless (would you buy them?), so renationalise. Now. Just do it.