Water companies must sort out their priorities
Keir Starmer needs to know that his plans to clean up sewage pollution aren’t good enough. That’s why we’re calling him to put an end to the profit driven scandal once and for all.
Water companies are operating with the creation of profit as their main objective.
Why are we surprised then when that is exactly what they do? Water companies aren’t treating our sewage properly because pollution is profitable. With shareholders making huge levels of cash, why would they change? They’re doing their job exactly as intended. And we continue to pay the price.
We think water companies need to sort out their priorities. But they won’t do it alone. It’s only the Government who can make that happen.
That’s why we need them to step in. They could reshape the plans for companies to put the delivery of service, public health and the environment first. Except they haven’t even bothered to look into how it could work. That’s despite 82% of you saying you want a shift in the ownership of the industry.
We are calling on the Government to assess the costs and the benefits of restructuring these companies. A simple assessment of the options of what would work best. We think they might even realise that currently, it’s the shareholders, not customers who’re currently quids in.
But what do we actually think could help?
Well, we’ve watched companies hemorrhage cash to shareholders for decades and we think it’s time to say enough is enough.
Water companies could be managed another way, a way that puts people and the environment first. Many people first envision this as a full renationalisation of companies, which is something we would support if it provided the best service. But there’s many more options to play with if only the Government stopped to think about it. These could be:
Changing the companies to operate as not-for-profits.
We have already seen this happen to Welsh Water. Companies could be shifted to reinvest all profits back into the system. Owned as a private company, but with all cash heading into the system, not out to shareholders.
Switching to community interest companies
Companies could operate for the benefit of the community. With decisions made by and for customers. This impacts where money is spent and makes sure it’s for the people locally.
Mutualising companies for workers and customers
Companies could be owned and managed by employees and customers for people and the environment. It would switch up who makes decisions and make sure their priorities are right.
All of these options would sort out companies priorities, making the crucial shift to operating for delivery and service, rather than profit first. There’s a huge array of options that would be better alternatives. But digging deeper into the options, will help show that there’s a better way and find out the one for companies.
That is why we need the Government to do the work, and simply look into the options.
The Government have even acknowledged that more has to be done and promised to transform the water sector. That’s why they are planning their water reform bill later this year. But until they look at the core of the rot, they won’t fix anything.
If you agree that more must be done, join us in calling on Sir Keir Starmer to end the profit driven sewage scandal.