Category: water

Opinion: Water under pressure – the case for renationalisation

By UNISON head of environment Donna Rowe-Merriman

Water is life – a basic human need and a critical public service. Yet across England, this precious resource has been in the hands of private companies for over 30 years, with disastrous consequences for customers, communities and the environment.

On the day that water regulator Ofwat announced hikes of an average of 36% over five years for consumers, England’s largest water company is on the verge of collapse, burdened with massive debt and embroiled in court battles. Elsewhere in England, over 50,000 homes, schools, hospitals and businesses are without water due to failing infrastructure.

Public good should come before private profit. It’s time to renationalise water companies.

A way forward

On 9 December, UNISON launched its water report in Parliament (see photo above, by Gary Schwartz), joined by senior UNISON activists from the water industry and Environment Agency, Labour MP Clive Lewis, parliamentarians and prominent academics, with speakers emphasising the need for a water sector that prioritises public health, environmental protection, and accountability.

Outlining a comprehensive roadmap for renationalisation, it highlights systemic issues in England’s privatised water sector.

When water services were privatised in England and Wales in 1989, it was sold to the public as a way to improve efficiency and attract investment. Since then, private water companies have raked in £72 billion in dividends for shareholders, while failing to invest adequately in infrastructure.

That is what Ofwat says today’s announcement of rises to bills is looking to address.

Household bills have risen by 40% in real terms and the regulator’s recent announcement to ringfence infrastructure – this only compounds the burden.

England’s rivers and beaches are in crisis, with companies spilling 3 million hours of raw sewage into waterways in 2022 alone. Only 14% of rivers meet good ecological standards.

Meanwhile, companies have built up a staggering £60 billion in debt since privatisation, with much of it used to pay shareholders.

A case study in the problems

Thames Water epitomises the issues plaguing the sector.

Despite managing the UK’s busiest water network, it loses 630 million litres of water daily – equivalent to 250 Olympic swimming pools.

Since 2017, the company has paid £32.4 million in fines for pollution, including dumping raw sewage into rivers.

It is saddled with £14 billion in debt, largely accrued to pay shareholders. In June 2023 it nearly collapsed, requiring a £750 million bailout from investors.

This is not an isolated case. Financial mismanagement, excessive shareholder payouts and environmental harm are endemic.

Failures of senior management in individual companies do not reflect the high standards of their employees, many of whom are UNISON members.

In addition, Ofwat was established to hold private companies accountable for fair pricing and environmental protection. It has failed, allowing companies to get away with poor performance, focusing on short-term price controls instead of long-term investment.

After a 20% price hike in July 2023, today’s announcement averages a 36% increase – closer to the demands of water companies, many of which are owned by foreign investors or private equity firms, and many of which prioritise profit over public service.

Renationalisation would eliminate the need to pay shareholders, allowing money to be reinvested into infrastructure and passed on to consumers as savings.

Public ownership can prioritise ecological restoration, ending the sewage scandal and ensuring clean, safe water for everyone. Removing the profit motive would allow water services to focus on long-term planning and sustainable investment, not short-term gain.

Public ownership isn’t just possible—it’s popular. A 2023 poll found that 66% of Britons support renationalising water, cutting across political and social divides.

UNISON will continue to pressure the government to make water security and renationalisation a key priority. It’s time to end the 30-year experiment of privatisation and put water back where it belongs – in the hands of the public.

Read the report: Clean Water – a case for public ownership

Water customers will be outraged that bills are rising again

The article Opinion: Water under pressure – the case for renationalisation first appeared on the UNISON National site.

Opinion: Water under pressure – the case for renationalisation

By UNISON head of environment Donna Rowe-Merriman

Water is life – a basic human need and a critical public service. Yet across England, this precious resource has been in the hands of private companies for over 30 years, with disastrous consequences for customers, communities and the environment.

On the day that water regulator Ofwat announced hikes of an average of 36% over five years for consumers, England’s largest water company is on the verge of collapse, burdened with massive debt and embroiled in court battles. Elsewhere in England, over 50,000 homes, schools, hospitals and businesses are without water due to failing infrastructure.

Public good should come before private profit. It’s time to renationalise water companies.

A way forward

On 9 December, UNISON launched its water report in Parliament (see photo above, by Gary Schwartz), joined by senior UNISON activists from the water industry and Environment Agency, Labour MP Clive Lewis, parliamentarians and prominent academics, with speakers emphasising the need for a water sector that prioritises public health, environmental protection, and accountability.

Outlining a comprehensive roadmap for renationalisation, it highlights systemic issues in England’s privatised water sector.

When water services were privatised in England and Wales in 1989, it was sold to the public as a way to improve efficiency and attract investment. Since then, private water companies have raked in £72 billion in dividends for shareholders, while failing to invest adequately in infrastructure.

That is what Ofwat says today’s announcement of rises to bills is looking to address.

Household bills have risen by 40% in real terms and the regulator’s recent announcement to ringfence infrastructure – this only compounds the burden.

England’s rivers and beaches are in crisis, with companies spilling 3 million hours of raw sewage into waterways in 2022 alone. Only 14% of rivers meet good ecological standards.

Meanwhile, companies have built up a staggering £60 billion in debt since privatisation, with much of it used to pay shareholders.

A case study in the problems

Thames Water epitomises the issues plaguing the sector.

Despite managing the UK’s busiest water network, it loses 630 million litres of water daily – equivalent to 250 Olympic swimming pools.

Since 2017, the company has paid £32.4 million in fines for pollution, including dumping raw sewage into rivers.

It is saddled with £14 billion in debt, largely accrued to pay shareholders. In June 2023 it nearly collapsed, requiring a £750 million bailout from investors.

This is not an isolated case. Financial mismanagement, excessive shareholder payouts and environmental harm are endemic.

Failures of senior management in individual companies do not reflect the high standards of their employees, many of whom are UNISON members.

In addition, Ofwat was established to hold private companies accountable for fair pricing and environmental protection. It has failed, allowing companies to get away with poor performance, focusing on short-term price controls instead of long-term investment.

After a 20% price hike in July 2023, today’s announcement averages a 36% increase – closer to the demands of water companies, many of which are owned by foreign investors or private equity firms, and many of which prioritise profit over public service.

Renationalisation would eliminate the need to pay shareholders, allowing money to be reinvested into infrastructure and passed on to consumers as savings.

Public ownership can prioritise ecological restoration, ending the sewage scandal and ensuring clean, safe water for everyone. Removing the profit motive would allow water services to focus on long-term planning and sustainable investment, not short-term gain.

Public ownership isn’t just possible—it’s popular. A 2023 poll found that 66% of Britons support renationalising water, cutting across political and social divides.

UNISON will continue to pressure the government to make water security and renationalisation a key priority. It’s time to end the 30-year experiment of privatisation and put water back where it belongs – in the hands of the public.

Read the report: Clean Water – a case for public ownership

Water customers will be outraged that bills are rising again

The article Opinion: Water under pressure – the case for renationalisation first appeared on the UNISON National site.

Ofwat has been asleep at the wheel

Commenting on the move by water regulator Ofwat to place Thames Water in a new ‘turnaround regime’ today (Thursday), UNISON head of environment Donna Rowe-Merriman said:

“Ofwat has been asleep at the wheel. Its failure to manage has plunged the water industry into chaos. The latest recovery plan is way too late to have any impact.

“Consumers are once again facing rising bills while shareholders pocket hefty dividends. The infrastructure has been critically neglected, causing irreversible damage to the environment and eroding public trust.

“The rot must stop. Water companies and the regulator must be held accountable to ensure the public interest always comes first. A complete overhaul in the management of the industry is urgently needed.”

Notes to editors:
– UNISON is the UK’s largest union with more than 1.3 million members providing public services in education, local government, the NHS, police service and energy. They are employed in the public, voluntary and private sectors.

Media contacts:
Fatima Ayad M: 07508 080383 E: f.ayad@unison.co.uk
Liz Chinchen M: 07778 158175 E: press@unison.co.uk

The article Ofwat has been asleep at the wheel first appeared on the UNISON National site.

Ofwat has been asleep at the wheel

Commenting on the move by water regulator Ofwat to place Thames Water in a new ‘turnaround regime’ today (Thursday), UNISON head of environment Donna Rowe-Merriman said:

“Ofwat has been asleep at the wheel. Its failure to manage has plunged the water industry into chaos. The latest recovery plan is way too late to have any impact.

“Consumers are once again facing rising bills while shareholders pocket hefty dividends. The infrastructure has been critically neglected, causing irreversible damage to the environment and eroding public trust.

“The rot must stop. Water companies and the regulator must be held accountable to ensure the public interest always comes first. A complete overhaul in the management of the industry is urgently needed.”

Notes to editors:
– UNISON is the UK’s largest union with more than 1.3 million members providing public services in education, local government, the NHS, police service and energy. They are employed in the public, voluntary and private sectors.

Media contacts:
Fatima Ayad M: 07508 080383 E: f.ayad@unison.co.uk
Liz Chinchen M: 07778 158175 E: press@unison.co.uk

The article Ofwat has been asleep at the wheel first appeared on the UNISON National site.

WET conference examines failure of privatisation

Image: Steve Forrest

UNISON’s water, environment and transport conference, held in Brighton on Sunday, was dominated by an examination of the failures of privatisation in the water industry.

The conference came during renewed media scrutiny of water companies after a new report came to light highlighting thousands of instances of sewage being discharged into waterways in dry weather in 2022, in “illegal spills”.

One motion took aim at this situation calling the current prohibitions against the illegal dumping of sewage into rivers “woefully inadequate”. It highlighted that, even with historic levels of sewage discharge, company bosses are pocketing millions in bonuses while wanting to increase bills by an extra £156 a year.

Image: Steve Forrest

Speaking in the debate, Natalie Mladenovich-Haigh (pictured above), chair of UNISON’s water industry sector committee, noted that “Sewage spills and illegal discharges into England’s waterways have doubled in the past year”.

She went on to highlight that this represented not only a disaster for the environment, but also for water staff and “our members within the sector who are facing an increase in attacks, both verbally and physically, from members of the public who are angry with the increase in both bills and sewage discharge”.

Another speaker from Yorkshire Water said: “We’re told now ­– don’t wear any ID outside of work. I ‘no longer work in Yorkshire Water’, ‘I work in IT’.”

The motion called on the SGE to monitor the impact of public abuse on employees, to lobby government to cease and reverse cuts made to the Environment Agency, and to work with Labour Link to positively campaign on finding a lasting solution to raw sewage discharges.

Image: Steve Forrest

Outside of main conference business, delegates also heard from Cat Hobbs, director of We Own It, in the key-note speech and in a fringe alongside authors of UNISON’s new report Clean Water, a case for public ownership, which was released the same day.

In her speech, Ms Hobbs noted that public ownership is a popular concept among the public, particularly in regard to water.

She highlighted the failures over 30 years of the England’s privatised water system, arguing that it has led to inadequate regulation due to a “revolving door” culture between companies and the regulator Ofwat.

Furthermore, she noted the stark difference in levels of investment, with Scotland seeing 35% more investment into their water infrastructure through its public water company compared to the English privately owned companies – equating to £72 per household more investment.

Image: Steve Forrest

At the fringe, authors of Clean Water, David Hall (pictured above) and Emanuele Lobina gave a detailed overview of the report from the historical context of privatisation of water in England through to its consequences and its solutions.

Mr Hall guided delegates through the research, comparing the UK’s performance against other countries whose water provision is publicly owned. He concluded that “the total contribution of the private owners of these companies over the years is to take out £85bn”, and citing the extraordinary figure that the dividends paid out by the companies are “equivalent to 69% of their pay bill on average.”

Mr Lobina then followed up by explaining the consequences for users, noting that that around 30% of households in the UK are in ‘water poverty’ which is where households spend more than 3% of their total expenditure on water.

He finished by examining ways in which the sector and government could solve the issues, chief among them was moving water back into public ownership.

The article WET conference examines failure of privatisation first appeared on the UNISON National site.

WET conference examines failure of privatisation

Image: Steve Forrest

UNISON’s water, environment and transport conference, held in Brighton on Sunday, was dominated by an examination of the failures of privatisation in the water industry.

The conference came during renewed media scrutiny of water companies after a new report came to light highlighting thousands of instances of sewage being discharged into waterways in dry weather in 2022, in “illegal spills”.

One motion took aim at this situation calling the current prohibitions against the illegal dumping of sewage into rivers “woefully inadequate”. It highlighted that, even with historic levels of sewage discharge, company bosses are pocketing millions in bonuses while wanting to increase bills by an extra £156 a year.

Image: Steve Forrest

Speaking in the debate, Natalie Mladenovich-Haigh (pictured above), chair of UNISON’s water industry sector committee, noted that “Sewage spills and illegal discharges into England’s waterways have doubled in the past year”.

She went on to highlight that this represented not only a disaster for the environment, but also for water staff and “our members within the sector who are facing an increase in attacks, both verbally and physically, from members of the public who are angry with the increase in both bills and sewage discharge”.

Another speaker from Yorkshire Water said: “We’re told now ­– don’t wear any ID outside of work. I ‘no longer work in Yorkshire Water’, ‘I work in IT’.”

The motion called on the SGE to monitor the impact of public abuse on employees, to lobby government to cease and reverse cuts made to the Environment Agency, and to work with Labour Link to positively campaign on finding a lasting solution to raw sewage discharges.

Image: Steve Forrest

Outside of main conference business, delegates also heard from Cat Hobbs, director of We Own It, in the key-note speech and in a fringe alongside authors of UNISON’s new report Clean Water, a case for public ownership, which was released the same day.

In her speech, Ms Hobbs noted that public ownership is a popular concept among the public, particularly in regard to water.

She highlighted the failures over 30 years of the England’s privatised water system, arguing that it has led to inadequate regulation due to a “revolving door” culture between companies and the regulator Ofwat.

Furthermore, she noted the stark difference in levels of investment, with Scotland seeing 35% more investment into their water infrastructure through its public water company compared to the English privately owned companies – equating to £72 per household more investment.

Image: Steve Forrest

At the fringe, authors of Clean Water, David Hall (pictured above) and Emanuele Lobina gave a detailed overview of the report from the historical context of privatisation of water in England through to its consequences and its solutions.

Mr Hall guided delegates through the research, comparing the UK’s performance against other countries whose water provision is publicly owned. He concluded that “the total contribution of the private owners of these companies over the years is to take out £85bn”, and citing the extraordinary figure that the dividends paid out by the companies are “equivalent to 69% of their pay bill on average.”

Mr Lobina then followed up by explaining the consequences for users, noting that that around 30% of households in the UK are in ‘water poverty’ which is where households spend more than 3% of their total expenditure on water.

He finished by examining ways in which the sector and government could solve the issues, chief among them was moving water back into public ownership.

The article WET conference examines failure of privatisation first appeared on the UNISON National site.

Opinion: The water industry is a national scandal

By UNISON’s head of environment, Donna Rowe-Merriman

The current ownership and operating model for the water industry in England is in the news almost every day – and almost always for the wrong reasons.

Privatisation of the water industry has failed. Disastrously. It was a Tory government gamble that has not paid off – unless you are a water company chief executive or shareholder.

Consumers have not seen better outcomes. In fact, we are seeing profits being extracted for shareholders and some water companies being laden with debt despite significant under-investment on infrastructure.

Companies have proven themselves inadequate – with their actions resulting in higher bills, lower standards and increasing harm to the natural environment and public health.

This model has resulted in the prioritising of profit ahead of investment, and the incurring of unsustainable levels of debt to support it, with negative consequences for the public and customers being the inevitable result.

Since privatisation, consumers have paid billions for services. Despite this, our environment is at breaking point and there is no real desire from this government to turn the tide and force companies to deliver much needed infrastructure investment.

It was recently revealed that 2023 saw a huge increase in sewage spills into waterways in England, from 301,091 spills in 2022 to 464,056 in 2023 – an increase of over 54% in a single year, making it the worst year for sewage spills on record.

Recent media reports have also confirmed that the nine water companies in England discharged sewage into rivers close to their own headquarters for more than 56,000 hours in 2023, further underscoring these failings.

This affects UK wildlife and millions of people that use rivers and coastlines for recreation, from anglers to surfers. Growing campaigns highlight not only broken pipes – but a fundamentally broken system.

In addition, the current major drinking water contamination incident in Devon, and the admission by bosses at South West Water of the inadequacy of the company’s response, have demonstrated how even confidence in the safety of drinking water in homes has been affected by the failings of water companies in England.

Yet instead of investment and improvements to infrastructure, companies in the water sector – which were debt-free at the time of privatisation – have since taken on over £60 billion of debt, while at the same time investors have withdrawn £85 billion in shareholder dividends and other payments.

Water company bosses have also reportedly received over £25m in bonuses and incentives since 2019, according to analysis.

The only solution to this crisis

At the same time, companies including Southern Water and Thames Water are reporting significant financial problems, with the owners of Thames Water insisting on significant increases to customer bills and a write-off of fines before it agrees to financially shore-up the company.

The result of this is failing water infrastructure, increasing sewage spillages, reduced public confidence in the safety drinking water, coupled with excessive shareholder rewards and an increasingly precarious financial situation for water companies themselves.

This demonstrates that the current model of ownership and operation is not fit for purpose, and UNISON’s longstanding position in calling for a renationalised water sector, which is publicly owned and properly publicly accountable instead of beholden to shareholders, is the solution to the shortcomings of the failed private model of ownership.

Water companies have been profiteering from privatisation for decades to the tune of tens of billions extracted for shareholders at the expense of customers and the environment.

These companies are leaving everyone with decades worth of problems for future generations – whether it is our environment, our wildlife, or our public health.

This is a national scandal of epic proportions on a public right for clean water from our taps and clean rivers and coastline for our communities.

The only real option is to bring these failing water companies back under public oversight, is publicly accountable and above all publicly owned.

The article Opinion: The water industry is a national scandal first appeared on the UNISON National site.

Opinion: The water industry is a national scandal

By UNISON’s head of environment, Donna Rowe-Merriman

The current ownership and operating model for the water industry in England is in the news almost every day – and almost always for the wrong reasons.

Privatisation of the water industry has failed. Disastrously. It was a Tory government gamble that has not paid off – unless you are a water company chief executive or shareholder.

Consumers have not seen better outcomes. In fact, we are seeing profits being extracted for shareholders and some water companies being laden with debt despite significant under-investment on infrastructure.

Companies have proven themselves inadequate – with their actions resulting in higher bills, lower standards and increasing harm to the natural environment and public health.

This model has resulted in the prioritising of profit ahead of investment, and the incurring of unsustainable levels of debt to support it, with negative consequences for the public and customers being the inevitable result.

Since privatisation, consumers have paid billions for services. Despite this, our environment is at breaking point and there is no real desire from this government to turn the tide and force companies to deliver much needed infrastructure investment.

It was recently revealed that 2023 saw a huge increase in sewage spills into waterways in England, from 301,091 spills in 2022 to 464,056 in 2023 – an increase of over 54% in a single year, making it the worst year for sewage spills on record.

Recent media reports have also confirmed that the nine water companies in England discharged sewage into rivers close to their own headquarters for more than 56,000 hours in 2023, further underscoring these failings.

This affects UK wildlife and millions of people that use rivers and coastlines for recreation, from anglers to surfers. Growing campaigns highlight not only broken pipes – but a fundamentally broken system.

In addition, the current major drinking water contamination incident in Devon, and the admission by bosses at South West Water of the inadequacy of the company’s response, have demonstrated how even confidence in the safety of drinking water in homes has been affected by the failings of water companies in England.

Yet instead of investment and improvements to infrastructure, companies in the water sector – which were debt-free at the time of privatisation – have since taken on over £60 billion of debt, while at the same time investors have withdrawn £85 billion in shareholder dividends and other payments.

Water company bosses have also reportedly received over £25m in bonuses and incentives since 2019, according to analysis.

The only solution to this crisis

At the same time, companies including Southern Water and Thames Water are reporting significant financial problems, with the owners of Thames Water insisting on significant increases to customer bills and a write-off of fines before it agrees to financially shore-up the company.

The result of this is failing water infrastructure, increasing sewage spillages, reduced public confidence in the safety drinking water, coupled with excessive shareholder rewards and an increasingly precarious financial situation for water companies themselves.

This demonstrates that the current model of ownership and operation is not fit for purpose, and UNISON’s longstanding position in calling for a renationalised water sector, which is publicly owned and properly publicly accountable instead of beholden to shareholders, is the solution to the shortcomings of the failed private model of ownership.

Water companies have been profiteering from privatisation for decades to the tune of tens of billions extracted for shareholders at the expense of customers and the environment.

These companies are leaving everyone with decades worth of problems for future generations – whether it is our environment, our wildlife, or our public health.

This is a national scandal of epic proportions on a public right for clean water from our taps and clean rivers and coastline for our communities.

The only real option is to bring these failing water companies back under public oversight, is publicly accountable and above all publicly owned.

The article Opinion: The water industry is a national scandal first appeared on the UNISON National site.

Opinion: Thames Water makes case for renationalisation … now!

By UNISON’s head of environment, Donna Rowe-Merriman

Shadowy overseas private equity firms have sucked all the good out of Thames Water and saddled it with billions of pounds of debt. So reports that it is scrambling to find extra cash, after handing out millions of pounds to shareholders and bonuses to top bosses in recent years, are hardly surprising.

Even its shareholders won’t keep it afloat, having refused to pay £500m by the end of the month, saying regulatory requirements make its business plan “uninvestable”, and insisting that bills must go up – company boss Chris Weston told the BBC today that they need to rise by 40%.

It’s clear that the business model for Thames Water has failed and the company is unviable.

The company is privately owned by a mix of people and businesses. The consortium of pension funds and sovereign wealth funds owns the entire business. The largest shareholder, as of July 2023, is the Canadian pension fund Ontario Municipal Employees Retirement System (Omers) with approximately 32%.

Mr Weston also stated that it was “business as usual” at the company. The business appears to be lurching from one crisis to another, leaving staff with an uncertain future and customers facing ever more massive bills.

In the 21st century, the issue of water pollution is a national disgrace. The government and regulator have failed to stop water companies to pollute our rivers, canals and coastline.

Saturday’s Boat Race organisers have issued new safety guidance for the races, warning rowers not to enter the water and to cover any open wounds, after high levels of E.coli bacteria were found on the River Thames course.

Provision of water should never have been privatised, allowing millions to be taken out of the industry to line the pockets of shareholders and company executives, while infrastructure was allowed to crumble.

The government must intervene and take control of a business and renationalise Thames Water and now.

The article Opinion: Thames Water makes case for renationalisation … now! first appeared on the UNISON National site.

Opinion: Thames Water makes case for renationalisation … now!

By UNISON’s head of environment, Donna Rowe-Merriman

Shadowy overseas private equity firms have sucked all the good out of Thames Water and saddled it with billions of pounds of debt. So reports that it is scrambling to find extra cash, after handing out millions of pounds to shareholders and bonuses to top bosses in recent years, are hardly surprising.

Even its shareholders won’t keep it afloat, having refused to pay £500m by the end of the month, saying regulatory requirements make its business plan “uninvestable”, and insisting that bills must go up – company boss Chris Weston told the BBC today that they need to rise by 40%.

It’s clear that the business model for Thames Water has failed and the company is unviable.

The company is privately owned by a mix of people and businesses. The consortium of pension funds and sovereign wealth funds owns the entire business. The largest shareholder, as of July 2023, is the Canadian pension fund Ontario Municipal Employees Retirement System (Omers) with approximately 32%.

Mr Weston also stated that it was “business as usual” at the company. The business appears to be lurching from one crisis to another, leaving staff with an uncertain future and customers facing ever more massive bills.

In the 21st century, the issue of water pollution is a national disgrace. The government and regulator have failed to stop water companies to pollute our rivers, canals and coastline.

Saturday’s Boat Race organisers have issued new safety guidance for the races, warning rowers not to enter the water and to cover any open wounds, after high levels of E.coli bacteria were found on the River Thames course.

Provision of water should never have been privatised, allowing millions to be taken out of the industry to line the pockets of shareholders and company executives, while infrastructure was allowed to crumble.

The government must intervene and take control of a business and renationalise Thames Water and now.

The article Opinion: Thames Water makes case for renationalisation … now! first appeared on the UNISON National site.