When was water privatised

The economic rationale offered for privatisation was that private companies would finance the investments required by EU standards without the burden of public borrowing, bringing their own money and greater efficiency into the system. But after 25 years, water prices had risen by 40 per cent above the general rate of inflation, and the amount of shareholder money in the companies has reduced in real terms.

Sewage flooding remains a major problem, with repeated problems and fines. Thames Water has been a repeat offender, but the new super sewer being constructed to deal with the problem is another economic problem.

As Thames refused to finance it by itself, the super sewer is financed by government loans and by an extra charge on consumers even before it is finished. There is underinvestment in water-resource management, with too-easy recourse to hosepipe bans, while water leakage runs at 3. The system also lacks effective public accountability. Southern Water is being investigated for breaching its statutory duties by Ofwat, the Environment Agency, and reportedly could face a Serious Fraud Office investigation.

But the ineffectiveness of Ofwat is another failed aspect of the system. Companies have been able to repeatedly game the price-regulation formulae to boost profits and extract dividends without critical scrutiny. They rely on Ofwat to act publicly as their defender — rather than a protector of consumer rights. The privatised water system is leaking sewage, water and money. The Labour Party policy to bring it back into public ownership is massively popular and would bring England and Wales back into line with the rest of the world, including Scotland.

SumOfUs aims to hold corporations accountable for their actions, to forge a new, sustainable and just path for our global economy. This wave of for-profit restructuring ceased to consider water a public health necessity — a basic human right provided on the basis of social equity — and became a commodity.

So what has water privatisation achieved? According to the National Audit Office, water bills have increased 40 per cent above inflation since Thirty years on, we are in a climate crisis that, at best, private companies are ill-equipped to tackle.

At worst, they are its main driver. Rising demand from a growing population and declining supply, due to increasing droughts, are putting our water supply under ever greater strain. But facing this looming crisis, the corporations granted stewardship over our precious resource have one priority — maximising profit. The drive to satisfy the short-term demands of shareholders mean the water companies carelessly waste water, refusing to plug 3 billion litres of leaks.

England is on course to run short of water in 25 years. Corporations that often think only in the short-term about protecting their profits over conserving our natural resources are not well placed to act to avert this catastrophe. Whether you are studying, actively looking to progress your career, or already extensively experienced, our membership will add value and recognition to your achievements. Registered in England and Wales.

Company No. SCo Scotland. Share this article. Diversity and inclusion — the end of the rainbow? Read this story. What's flood got to do with it? Ten steps greener — a manifesto for a lower-carbon decade 10 December PM Karen Thomas Ten steps greener — a manifesto for a lower-carbon decade Read this story.

Become a member Whether you are studying, actively looking to progress your career, or already extensively experienced, our membership will add value and recognition to your achievements. Become a member. Find out more. Meanwhile, as millions face life under a hosepipe ban, GMB figures show 2. Join our campaign. We need to Take Back The Tap and ensure our water services are run in the interests of the public once more. Companies trousering huge profits while almost 2 million households unable to pay water bills shows skewed priorities.

Boss trousers more than half a million pounds while expecting pandemic heroes to take real terms pay cut. Skip to main content. Meeting rooms. Improving services for customers. Protecting the environment. Safeguarding water resources. Managing sewage and drainage.

Technical guidance. Developer services. Water standards. Advice for customers. Covid information for customers. Find your supplier. Water company performance. General advice. Dealing with sewage.