Down The Drain.

A financial crisis at the country's biggest water company, Thames Water, has shone a bright light on the insanity of privatising public utilities.

The situation at Thames came to light when executives fessed up to the Environment, Food and Rural Affairs Committee this week. The MPs heard that the company was sitting on a £14.7 BILLION debt pile and currently was not able to make its next loan repayment of £190 million.

A cursory bit of investigation found latest available figures show the nation's 15 privatised water companies, many owned by foreign investors and with somewhat unclear, precise ownership, have run up debts totalling £60.6 BILLION from two years after they were privatised in 1989 up until March last year. (https://www.bloomberg.com/news/articles/2023-06-30/rising-inflation-means-british-water-companies-are-leaking-money).

The firms have, meanwhile, paid out £57 BILLION to shareholders from 1991 to 2019 - ALMOST HALF THE AMOUNT SPENT ON REPAIRING AND IMPROVING PIPES AND TREATMENT PLANTS! (https://www.theguardian.com/environment/2020/jul/01/england-privatised-water-firms-dividends-shareholders).

Don't forget, these companies promised to triple investment in improving the country's sewage system and cutting pollution - which should have been done years before - but passed the £10 billion bill on to customers! (https://www.theguardian.com/environment/2023/may/18/english-water-firms-must-be-held-to-investment-pledge-say-campaigners).

More than 30 years of privatisation, chronic under-investment and, at the same time, greedy profit-taking, have meant that £97 BILLION is now needed to repair leaky pipes and guess what? The company chief executives say we, the customers, will have to foot the bill. You know, pay them for a service but pay them even more if we actually want them to provide it?

While all of this is going on - massive debts being run up, collapsing infrastructure and rising bills - you can rest assured the chief executives involved are tightening their belts to help out. Yes, between them, they have pocketed £58 million in pay and benefits over the last five years! Among these public spirited types are: 

Severn Trent boss Liv Garfield - £3.9 million-a-year.

United Utilities boss Steve Mogford - £3.2 million-a-year.

Thames Water boss Sarah Bentley - £2 million-a-year.

Pennon boss Susan Davy - £1.6 million-a-year.

Anglian Water boss Peter Simpson - £1.3 million-a-year.

AND, my favourite......

Southern Water boss Lawrence Gosden.....PAY NOT REVEALED!!!!!!

(https://www.theguardian.com/business/2022/aug/15/drought-hits-water-company-chief-executives-paid).

I've never understood the supposed benefits of privatisation. To me, it seems:

A. PUBLIC SECTOR; SERVICE TO CUSTOMERS = PROFITS - COSTS.

B. PRIVATE SECTOR; SERVICE TO CUSTOMERS = (PROFITS - COSTS) - PAYMENTS TO SHAREHOLDERS.

I'm no maths genius but I would have thought A leaves more money to be spent on services? No? Then explain.