It’s been branded ‘daylight robbery’
An investigation by the Guardian published today has revealed that staggering proportions of the public’s water bills are used to service private water firms’ debt. According to the paper’s analysis of financial data over a quarter of some water companies’ revenue goes on servicing debt.
The UK’s largest water firm, Thames Water, uses an astonishing 28 per cent of its revenue to service debt. Southern Water and South East Water both also use more than a quarter of their revenue for the same purpose.
Almost the entirety of water company revenue is made up of customer bills. As of March, the private water firms in England had racked up combined debts of more than £60 billion. Meanwhile, since privatisation of water in England in 1989, private water companies have paid out over £70 billion in dividends to shareholders.
The Guardian notes that Scottish Water, which remains publicly owned, spent just 10 per cent of its revenues financing its debt, less than all of the private water firms in England.
The revelations have led to a furious public backlash and renewed calls for England’s water to be taken back into public ownership.
Labour peer and Left Foot Forward columnist Prem Sikka branded the situation as ‘daylight robbery’, saying that money had been ‘borrowed to pay dividends, and that ‘companies want more from captive customers’.
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dizzy: This ridiculous situation is on the Conservatives watch …
