The recent turmoil at South East Water highlights the water industry’s tendency to deflect blame for its own problems. Regardless of weather conditions or other excuses, the industry has siphoned off vast sums of money – £85 billion to be exact – through dividends, leaving customers high and dry while enriching investors. Since water privatization in the late 1980s, the industry has shifted focus from serving customers to becoming lucrative assets for distant mega-rich owners based in various countries like Australia, Hong Kong, and Canada.
The lack of competition in the sector has allowed companies to exploit customers, with returns regulated every five years by a relatively toothless authority. However, recent actions by Ofwat indicate a potential shift towards advocating for consumer interests. In cases of looming financial collapse, such as with debt-laden Thames Water, taxpayers often bear the burden of rescue due to water’s critical importance.
Critics argue that returning the industry to public ownership could address these issues, citing successful examples in other countries and drawing parallels to the rail industry in the UK. Amidst this, top executives in water companies earn substantial salaries, sometimes surpassing that of the Prime Minister, while frontline workers face criticism for issues beyond their control.
Efforts by the Labour party to address longstanding challenges in the industry are seen as a positive step towards a future where rivers are clean, anglers can enjoy their sport without fear of contamination, and consumers have reliable and affordable water services.