Renationalising water could fix sewage crisis – but no major party will do it

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Dead fish on the Silchester Brook in Hampshire, England following the release of sewage by a water treatment works. Rob Read/Alamy Stock Photo

Kevin Grecksch, University of Oxford

Privatised water companies discharged raw sewage into rivers and the sea around England and Wales for 3.6 million hours in 2023 – double the previous year’s total. For a sense of how bad the problem is today, check this map of the south-east of the UK which shows how much sewage water companies are dumping right now and for how long.

As a water researcher, I am happy to see water quality high on the political agenda but aggrieved that it is because of the sewage scandal that has engulfed the UK, and especially England and Wales, in the past couple of years.

Companies have discharged more raw sewage than they are legally allowed to and the Environment Agency, as responsible regulator in England, has been unable to monitor and control offenders as its environmental protection budget was halved between 2010 and 2020. Water firms have neglected to invest in new and enlarged wastewater treatment works for decades and so the ageing system is struggling to meet demand.

An angry public demands cleaner water and changes to how water companies are regulated and run. All major political parties have at least something to say about it in their pitch to voters ahead of July 4 general election.

No clear blue water between Tories and Labour

The Conservative party doesn’t mention the word “sewage” in its manifesto. The party instead highlights what it sees as the government’s achievements in reducing leaks from water pipes, preventing supply interruptions and raising the proportion of designated bathing water sites classified as “good” or “excellent” from 76% in 2010 to 90% in 2023.

These “achievements” are misleading, however. Most of the 451 designated bathing water sites are around the coast, not rivers. Bathing sites only occupy a small stretch of a river (of which many are rated poorly) and most sewage dumpings take place elsewhere along the river, which is not accounted for in the statistics the Tories present.

The party would ban executive bonuses if companies commit a serious criminal breach (dumping sewage, for example) and use fines to invest in river restoration. The Tories evidently expect pollution to keep increasing. Forget working on the cause of the problem and preventing “serious criminal breaches” from happening in the first place.

A river with a murky surface.
Surface pollution on the Leeds and Liverpool canal. AlanMorris/Shutterstock

The Labour party has said it will force water companies to “clean up our rivers” by putting them under “special measures” but does not explain what this means. Like the Conservatives, Labour wants to impose fines on water companies, block the bonuses of executives and improve independent monitoring. Again, Labour offers no further detail on what that would entail.

This is in stark contrast to election campaigns fought under Jeremy Corbyn, when Labour argued for renationalising the water industry.

Both Labour and the Tories propose fines which have proven to be no deterrent. The Environment Agency fined Southern Water – the company that provides water and wastewater services to more than four million people across Hampshire, Sussex and Kent – a record £90 million in 2021, yet illegal sewage discharges by water companies have only increased since then.

Ultimately, fines are a capitulation before the real problem of preventing illegal sewage discharges.

Lib Dems a bit bolder

Banning water companies from dumping raw sewage into rivers and giving them a duty to protect the environment is the goal of the Liberal Democrats.

The Lib Dems want to transform water companies into public benefit companies (but there’s no explanation of how these would differ from their present privatised form) and would ban bonuses for water company executives until rivers are clean (but there’s no definition of “clean”).

Ofwat, the economic regulator for the water industry, would be replaced with a new regulator with powers to prevent sewage dumping. The party also wants a sewage tax on water company profits to enforce existing regulations more effectively, set legally binding targets on the reduction of sewage dumping, create wetlands to stymie flooding and strengthen local authorities monitoring water quality – it’s unclear how this would meld with a “tough new regulator”, though.

Greens are pro-nationalisation

The Green party wants to bring water services back into public ownership along with Britain’s big five energy companies.

The Greens are the only ones putting numbers to the problem. The party estimates renationalisation would cost £5 billion and investment into water and sewage infrastructure a further £12 billion.

The experiment of privatisation has failed, they argue, and water should be treated as a public good.

Reform’s 50% offer

Reform UK does not mention the sewage scandal directly, but its manifesto proposes bringing 50% of each utility back into public hands. According to the party, this would save £5 billion across all utilities over five years.

Welsh water for Wales

Plaid Cymru wants more public control of Welsh resources, including water.

Lots of water stored in Welsh reservoirs goes to England, especially Birmingham and Liverpool. Plaid Cymru would align legislative competence over water with the geographical boundaries of Wales. In other words, Wales wants to fully take care of its water and improve its quality.

Drought in 2022 made the case for more reservoirs. EPA-EFE/Tolga Akmen

What about Scotland and Northern Ireland?

The SNP does not mention freshwater in its manifesto. Sewage dumping appears to be less common in Scotland, where the water industry is publicly owned. However, reports suggest official estimates are too low.

Northern Ireland’s Sinn Féin does not discuss water in its manifesto. The DUP acknowledges pollution in the UK’s largest inland lake, Lough Neagh, and asks for a concerted effort to preserve its water quality.

Watered down

The smaller parties have my sympathies for bringing forward bolder plans for water management in the UK. Unfortunately, both the Conservatives and Labour are very uninspiring in their hesitance to prevent pollution.

If better regulation, monitoring and enforcement is the most a new UK government will do then this will require a bigger budget for the Environment Agency, at least. Measuring the volume and composition of sewage outflows, not just the duration of pollution events, would also provide more accurate information.

Ofwat, the economic regulator for the water industry, needs reform too. The UK water industry is slow to innovate and misses opportunities to do so. As I have written before, the UK water industry is a small sector with a revolving door that leads former regulators to join the regulated, and vice versa. This creates obvious conflicts of interest and stymies change.

The experience of England and Wales implies that privatised water utilities are a bad idea. Margaret Thatcher believed this model would find admirers globally, but since the late 1980s, no other country has followed suit. In fact, the opposite has tended to happen: after a failed privatisation, Paris returned its water supply services to public hands.

Privatisation has excluded the public from discussing water management in the past 35 years. It is time to reconnect people with the very resource we all need to survive. Capping a CEO’s bonus does not go far enough.


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Kevin Grecksch, Departmental Lecturer and Course Director MSc in Water Science, Policy and Management, University of Oxford

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Continue ReadingRenationalising water could fix sewage crisis – but no major party will do it

Green Party manifesto pledges to nationalise water, railways and energy companies

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https://www.politics.co.uk/news/2024/06/12/election-2024-green-party-manifesto-pledges-to-nationalise-water-railways-and-energy-companies/

The Green Party has unveiled its election manifesto, sold as a plan to “mend broken Britain”.

Addressing the Greens’ launch event in Brighton and Hove, co-leader Carla Denyer said the manifesto contained measures to “offer real hope and real change”.

“Our manifesto is based on investing to mend broken Britain and offer real hope and real change”, she said, adding: “We can’t go on with an economy where  most people are working harder and yet getting poorer while inequality keeps growing.”

The Greens’ policies include introducing a new wealth tax of 1 per cent annually on assets above £10 million and 2 per cent on those above £2 billion, banning domestic flights for journeys which would take less than three hours by train, and moving to a four-day working week.

The party would also bring water companies, railways, and big five retail energy companies into public ownership; end immigration detention for all migrants unless they pose a danger to public safety; invest £50 billion in health and social care “to defend and restore the NHS”; scrap university tuition fees and increase the schools budget; and stop all new fossil fuel projects and cancel those recently licensed, like Rosebank in Scotland.

https://www.politics.co.uk/news/2024/06/12/election-2024-green-party-manifesto-pledges-to-nationalise-water-railways-and-energy-companies/

Continue ReadingGreen Party manifesto pledges to nationalise water, railways and energy companies

Let Thames Water go bust: It’s time to bring water back into public ownership

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https://leftfootforward.org/2024/04/let-thames-water-go-bust-its-time-to-bring-water-back-into-public-ownership/

England’s privatised water companies are an example of vulture capitalism

Prem Sikka is an Emeritus Professor of Accounting at the University of Essex and the University of Sheffield, a Labour member of the House of Lords, and Contributing Editor at Left Foot Forward.

England’s privatised water companies are an example of vulture capitalism unleashed by neoliberal obsession with privatisation of essential services. Its poster child, Thames Water, the UK’s largest water company, wants a 40% price increase and guaranteed returns. Its investors based in China, Abu Dhabi, Canada and the Netherlands are holding the government, regulators and people to ransom by stating that unless their demands are met they won’t invest and let the business collapse. Any concession to Thames will enable other water companies and corporations to do the same. It is time to tackle vulture capitalism head-on, let Thames go bust and bring water back into public ownership.

The industry was privatised in 1989 for a net price of £6.1bn, £7.5bn price minus a dowry of £1.5bn to give companies a debt free start. So far water companies have paid more than £75bn in dividends, and neglected investment. Customer bills have increased by over 350%, double the rate of inflation. Companies operate through complex opaque corporate structures and are adept at shifting profits to low/no tax jurisdiction. They pay little or no corporation tax. In 2023, sewage was dumped into rivers/seas for 3.6 million hours, compared to 1.75m hours in 2022. Some 3bn litres of water is lost every year due to leaks from a dilapidated infrastructure. No new reservoirs have been built since 1989.

Privatisation has failed and water industry needs to be brought back into public ownership. However, acknowledging that privatisation has failed would be a bitter pill to swallow for the Conservative government. In an election year, the government will try to prolong the life of Thames Water. During his leadership campaign, Labour leader Sir Keir Starmer promised to nationalise water, but has since reversed his position. A crisis looms for both parties.

Profiteering is the root cause of the crisis, and that can’t be addressed by handing the company to another profit seeking operator. The profit element needs to be removed and surpluses need to be ploughed back into building the infrastructure. Public ownership whether through a not-for-profit, a community owned, or a mutual organisation is the best way forward.

https://leftfootforward.org/2024/04/let-thames-water-go-bust-its-time-to-bring-water-back-into-public-ownership/

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

dizzy: 350% seems far more than double the rate of inflation so there may be an error there. I wonder if there is a case of criminal neglect here since water companies’ conduct affects pollution and health.

Continue ReadingLet Thames Water go bust: It’s time to bring water back into public ownership

Morning Star: Sewage at the boat race: it’s well over time we take water back into public hands

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Many articles from the Morning Star featured today. https://morningstaronline.co.uk/article/editorial-take-water-back-public-hands

A rowing boat on the River Thames Putney, London, March 27, 2024

THE crisis of capitalism is running out of your taps and pouring into our rivers. Britain’s water industry is lurching towards calamity, poisoned by the priorities of profit and abetted by politicians in the pocket of the privateers.

The largest water company in the country, Thames Water, appears to be on the edge of insolvency after its investors refused to pump in cash essential to the company’s survival — apparently because the reluctance of regulator Ofwat to authorise even steeper increases in bills to households made it an unattractive bet.

And alarm was spread about the annual Oxford-Cambridge boat race on Saturday having to row through the sewage-ridden Thames, with doubts being cast on maintaining the tradition of throwing the cox of the winning crew in the river on health and safety grounds.

Now there are calls for the government to declare a national emergency as discharges of raw sewage into rivers and seas across Britain reach a record high.

These are the fruits of the handing over of the most basic resource to the tender mercies of monopoly capital. The sewage in the rivers is one side of the coin, the riches sitting in shareholders’ bank accounts is the other.

Nationalisation may be forced on the government in the case of Thames Water. But state control can only work in a context of planning, investment and a role for both workers’ and consumer interests.

That was Labour Party policy until Keir Starmer abandoned it. It is time the labour movement demanded its reinstatement.

Many articles from the Morning Star featured today. https://morningstaronline.co.uk/article/editorial-take-water-back-public-hands

Continue ReadingMorning Star: Sewage at the boat race: it’s well over time we take water back into public hands

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.

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.

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.”

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