Water industry investors have withdrawn billions, claims researchShareholders in some of the UK's largest water companies have taken out tens of...
Published on by Water Network Research, Official research team of The Water Network
Shareholders in some of the UK's largest water companies have taken out tens of billions of pounds but failed to invest, new research claims, with firms planning to raise household bills to fund future spending.
Investors have withdrawn £85.2bn from 10 water and sewage firms in England and Wales since the industry was privatised more than 30 years ago, analysis by the University of Greenwich suggests.
Companies are under pressure following sewage spills and water leaks, which critics have blamed on under-investment in the country's infrastructure.
Ofwat, the industry regulator, said it "strongly refuted" the figures.
"While we agree wholeheartedly with demands for companies to change, the facts are there has been huge investment in the sector of over £200bn," a spokesperson said.
Water UK, which represents the industry, said investment in the sector was "double the annual levels seen before privatisation".
Water and sewage firms want to increase customers' bills by an average 33% over the next five years to fund improvements in the services for households.
But David Hall, visiting professor at the Public Services International Research Unit at the University of Greenwich, claims that water companies have invested "less than nothing of their own money" and are “treating their customers like a cash cow”.
The University of Greenwich examined the company accounts of the top 10 water and sewage companies in England and Wales including Thames Water, United Utilities and Severn Trent.
It said that between privatisation in 1989 and 2023, money invested by shareholders in the largest firms shrunk by £5.5bn when adjusted for inflation.
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https://www.bbc.com/news/articles/cw4478wnjdpoTaxonomy
- Public Private Partnerships in Water
- Public - Private Partnerships
- Public Private Partnership
- Public Private Partnerships