Big fines for water companies but what will happen to that money?
A regulator has proposed big fines for water companies but what will happen to that money?
Ofwat has been investigating allegations that the UK’s privatised water companies have failed to provide the service expected by their customers, and has concluded that three firms have failed to adequately invest in and maintain their networks, leading to repeated releases of raw sewage into the country’s waterways.
It has proposed fines of £47 million for Yorkshire Water and £17 million for Northumbrian Water. For Thames Water it is proposing the largest fine on record: £104 million.
So what?
Thames Water made an operating profit of nearly four times as much as that – proposed – fine in the six months to December 2022: £398 million.
In any case, it – and both the other firms – will probably pass on the cost of those fines to customers so they can keep funnelling money to their executives and shareholders.
So the effect of the penalty will most likely be negligible – unless the government stipulates that they cannot increase prices to accommodate the cost of the fines.
Also: what will happen to the £168 million that will be taken from those firms?
This Writer thinks the best use for it would be to impose compulsory repairs on each company’s supply and sewage networks, starting with the parts that are causing the biggest problems.
Basically, I’m suggesting that the government should use the fines to hire people who will carry out the work, whether the water companies want it or not.
It probably won’t – and that would be a wrong decision.
What do you think? Should fines on water companies be used to fix the problems they have created?
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These ‘lawful’ fiddles should be made illegal. Quite simply, it is theft. Load up the company by taking huge loans, use the money to pay shareholders unearned dividends and reward CEO for taking the business down the well worn track to Bankruptcy. Then walk away! The water companies are worth, at best, very little because of their huge debts. The regulator gets ear-ache as he has failed to regulate but by essentially he has done his job – but it is the wrong job! At the moment there is little we can do but watch fat cats get fatter and the public poorer. It needs fixing and this can only be done by a government with a huge majority. Get it done, NOW!
This proves, if anymore proof is needed, that government and ‘regulators do not work for the benefit of the people of Britain….They are betraying us all in the name of corruption and profit!