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Vast majority of public do not trust water companies, new research shows

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Image of a burst water main.
Image of a burst water main.

https://leftfootforward.org/2024/04/vast-majority-of-public-do-not-trust-water-companies-new-research-shows/

‘There is a growing perception that the water industry cares more about profit than the service it provides.’

Public trust in water companies has hit a new low. Less than one in four people believe water companies will help protect the environment.

Just 23 percent of water consumers in England and Wales say they trust their water companies to “do what’s right for the environment,” marking a 9 percent drop from 31 percent two years ago.

These were the findings of a consumer survey commissioned by Ofwat and the consumer watchdog Consumer Council for Water (CCW). The Savanta study was conducted between December 4 and 18, 2023. It surveyed 2,399 UK adults in England and Wales.

The research found that satisfaction with the quality of water services has fallen to 58 percent from 65 percent in 2021. Similarly, consumer satisfaction with wastewater and drainage services has dropped to 49 percent from 56 percent.

The water regulator Ofwat says the findings underscore the importance of the need for a transformative change in the water sector, so that it “delivers better outcomes for customers and the environment.”

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https://leftfootforward.org/2024/04/vast-majority-of-public-do-not-trust-water-companies-new-research-shows/

Continue ReadingVast majority of public do not trust water companies, new research shows

Fresh crisis for Thames Water as investors pull plug on £500m of funding

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https://www.theguardian.com/business/2024/mar/28/fresh-crisis-for-thames-water-as-investors-pull-plug-on-500m-of-funding

In July, Thames Water had agreed £750m of funding, with the first payment expected to be made on 31 March. Photograph: Maureen McLean/Shutterstock

Decision raises concerns about financial future of UK’s biggest water company

Investors at Thames Water have pulled the plug on £500m of emergency funding, raising concerns about the financial future of the country’s largest water company.

The beleaguered utilities firm announced this morning that its shareholders had refused to provide the first tranche of £750m funding set to secure its short-term cashflow, after the company had failed to meet certain conditions.

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The crisis for Thames Water comes after devastating data on the scale of raw sewage discharges into rivers and seas this week.

Thames Water, who admit in their business plan they have been “sweating assets”, oversaw a 163% [increase?] in the duration of sewage dumping into rivers as their creaking infrastructure failed to cope with rainfall levels.

Thames is also at the centre of a major investigation by the water regulator Ofwat into sewage dumping from its treatment works, which could lead to massive financial penalties being imposed on the company.

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Thames Water said on Wednesday that investors believed the conditions of funding had not been met and the £500m of new equity would not be handed over in the coming days.

A statement on behalf of Thames’s shareholders appeared to blame Ofwat: “After more than a year of negotiations with the regulator, Ofwat has not been prepared to provide the necessary regulatory support for a business plan which ultimately addresses the issues that Thames Water faces. As a result, shareholders are not in a position to provide further funding to Thames Water.

“Shareholders will work constructively with Thames Water, Ofwat and government on how to address the consequences of Ofwat’s decision.”

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https://www.theguardian.com/business/2024/mar/28/fresh-crisis-for-thames-water-as-investors-pull-plug-on-500m-of-funding

Continue ReadingFresh crisis for Thames Water as investors pull plug on £500m of funding

Thames Water lobbying government to let it increase bills by 40%

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https://www.theguardian.com/business/2024/feb/28/thames-water-lobbying-government-bills-dividends-fines-breaches-taxpayer-bailout

UK’s largest water company also calls for dividend payouts and lower fines for breaches to avoid taxpayer bailout

Thames Water has been lobbying the government and regulators to let it increase bills by 40%, pay lower fines for breaches and keep paying out dividends as part of efforts to avert a taxpayer bailout, according to a report.

The UK’s largest water company was trying to strike a deal with the watchdog Ofwat that would give it permission to charge customers more to avoid having to be taken over by court-appointed special administrators, the Financial Times reported.

That plan would give Thames Water permission to increase bills by 40% by 2030, while also offering more leniency around regulator fines and rules around the dividends it can pay to shareholders.

It comes as the company, which serves more than 15m households, attempts to deal with a debt pile of £14bn and widespread criticism over sewage dumping.

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https://www.theguardian.com/business/2024/feb/28/thames-water-lobbying-government-bills-dividends-fines-breaches-taxpayer-bailout

Continue ReadingThames Water lobbying government to let it increase bills by 40%