The mess with private water companies in England and Wales seems to have no end – and the new Labour government looks set to let them off the hook. The Guardian reports: “Billpayers in England and Wales tricked into ‘stealth bailout’ of water companies”.
Ofwat, the state water industry regulator, is accused of overseeing a “stealth bailout of water companies” over a proposals to increase bills by up to 44% over the next five years, allowing the water companies therewith to keep paying dividends to their shareholders while under-investing into infrastructure. Since privatisation, water companies have paid out £53bn in dividends, according to Ofwat’s figures. Campaign group Windrush Against Sewage Pollution (Wasp), which exposed suspected illegal discharges of sewage across England and Wales, has challenged Ofwat over the proposed price rises. The final determinations are due to be announced in December.
Ashley Smith, founder of Wasp, said water firms had built “illegal operation” into their business models, presiding over sewage pollution in rivers and along the coastline in England and Wales while taking billions of pounds in dividends. Consumers were now expected to pay for the clean-up operation. He said:
“If the price review carries on as planned, customers are going to be forced to pay higher bills to conduct a stealth bailout of water companies. We think Ofwat is tricking the public into funding it.”
