Unions, celebrities and river campaigners are calling on the new UK government to stop the water industry’s attempts to increase bills for customers in England and Wales by up to 91% and immediately launch a comprehensive review of water ownership.
Author Michael Rosen and comedians Nish Kumar and Stephen Fry joined campaigners from Greenpeace, Surfers Against Sewage, River Action, the Rivers Trust and campaigners across the country in signing a letter to Keir Starmer calling on him to intervene, days before before the Ofwat regulator arrives. to announce whether they will approve huge increases in bills for customers across England and Wales.
Some of the most polluting and financially troubled water companies, including Thames Water and Southern Water, are seeking the biggest bill increases. Thames Water wants customers’ bills to rise by 59% after inflation. Southern aims to increase bills by 91% to £915 a year by 2030.
Organized by campaign group We Own It, the letter was also signed by the GMB and Unite unions. It reads: “Saturday marks 35 years since the Water Act 1989 introduced our current model of water and sanitation management, including privatization and top-down regulation.
“Bills have grown twice as fast as inflation. No new drink containers were supplied. A quarter of our supply is leaking from our pipes. Debts are outstanding; “non-investable” plans. And last year, operators discharged more than 3 million hours of waste water into our rivers and seas.
“If the current failed model remains in place, Labor could be fighting the next election with some bills in excess of £915 a year and sewage will be a greater threat to our health than ever before.
The letter calls on the Prime Minister to suspend the current rate-setting process and immediately launch a general public review of ownership and regulation, including consultation with water campaigners, union representatives and customers.
Water companies are pledging their biggest investment yet of £100bn to repair aging infrastructure, reduce waste water discharges and build new reservoirs, 35 years after the sector was privatised.
They are acting following public outcry over sewage pollution of rivers and seas and the decline of England’s rivers to the point where no river is considered unfit. As well as concerns about the health of rivers, there are growing concerns about the threat to public health from the way sewage is treated in England. Chief Medical Officer for England, Professor Chris Whitty, said public health must be at the heart of future investment in the new sewage system to protect people from water-borne diseases from contact with rivers and coastal waters polluted by treated and untreated sewage.
The regulator Ofwat, itself under pressure for allowing companies to pay out £78bn in dividends over the past three decades while building up £60bn of debt, will announce on Thursday whether it approves the business plans of major water and sewerage companies.
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Ofwat’s decision, which has been delayed until July 11 due to the general election, comes amid a growing crisis in the water sector. Thames Water, the biggest privatized water monopoly, is struggling to stay afloat with debts of almost £15 billion and investors are threatening to pull the plug on the company. Ofwat identified concerns about the financial resilience of other privatized companies, including Southern Water, SES Water and South East Water, as the biggest concern. The regulator is also concerned about the financial resilience of Yorkshire Water and Portsmouth Water. ​
“No other country in the world operates water and sanitation the way we do: 90% publicly owned and supplied,” the letter to Starmer said.
“Regulation was flawed, trapped and underfunded: a constant threat to the current model. Accountability must be reviewed, including placing community representatives on company boards and using ‘sunshine regulation’ to ensure greater transparency.”