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This is due to be published tomorrow. I will be interested to see if there’s anything in it or whether it’s just another can to kick down the road. They love a Review. Especially, as has been shown with the Waspi women, it can be completely ignored.
The problems and the reasons behind the national disgrace of the water industry have been blindingly obvious for literally decades. No government has given a hoot about it and in the meantime this country is turning into an environmental toilet.
Ironically, I don’t blame the owners of the water companies at all. They are doing what is right by their shareholders. Of course renewing infrastructure, repairs and leaks are at the bottom of the priority list.
When the Tory criminals sold off this asset we all already owned, they were solvent. Now they are not and we are paying through the nose something that should be dirt cheap in a country with this amount of rainfall. Our rivers and coasts should not have any sewage running into them either.
Labour have been in power a year. They knew what the problems were long before the last election. What has Environment Secretary Reed done in the last year, beyond the odd Sudoku? Zilch by the look of it but maybe I’m being harsh. And those still alive who were responsible for this disaster plus those since who’ve ignored the obvious every year since should be held to account.
Thoughts?
5
Review of Water Industry on 08:40 - Jul 21 with 261 views
As much as anything they need to tighten up regulations and oversight. Welsh Water are a bad offender and they have a not-for-profit model. State ownership should happen, but as things stand it would just see the same result through insufficient funding and working to the lowest common denominator. Most of the firms are actually debt laden so acquisition would require serious public investment. After nationalising EDF, the firm lost billions in the first year of full state ownership. Privatising a monopoly, where there is no competition was just a nonsensical choice.
I’m not keen on the idea of a takeover without paying the market valuation, rule of law and property rights mean we have an attractive jurisdiction in which to operate, and are crucial if we don’t want to frighten off FDI. You only have to watch how the current US administration have created huge uncertainty for businesses.
In fairness to Labour they’ve committed to renationalising the rail network so perhaps they will be bold (but probably not).
"They break our legs and tell us to be grateful when they offer us crutches."
As much as anything they need to tighten up regulations and oversight. Welsh Water are a bad offender and they have a not-for-profit model. State ownership should happen, but as things stand it would just see the same result through insufficient funding and working to the lowest common denominator. Most of the firms are actually debt laden so acquisition would require serious public investment. After nationalising EDF, the firm lost billions in the first year of full state ownership. Privatising a monopoly, where there is no competition was just a nonsensical choice.
I’m not keen on the idea of a takeover without paying the market valuation, rule of law and property rights mean we have an attractive jurisdiction in which to operate, and are crucial if we don’t want to frighten off FDI. You only have to watch how the current US administration have created huge uncertainty for businesses.
In fairness to Labour they’ve committed to renationalising the rail network so perhaps they will be bold (but probably not).
Hurrah...all is well for portfolio holders....
'Shares in stock market-listed water companies are rising a little in early trading, as investors digest Sir Jon Cunliffe’s report into the sector.'
"They break our legs and tell us to be grateful when they offer us crutches."
Review of Water Industry on 08:37 - Jul 21 by Freddies_Ears
I simply do not understand how it is even legal to load a company with its own debt, or to pay dividends other than out of profit. The water company owners have simply destroyed the value in the industry, extracting tens of billions of £ rather than investing it back into sewage treatment, new reservoirs, leak fixing etc etc etc. Ofwat failed to regulate, either because it did not have the power (govt issue) or because it was utterly incompetent.
Have any other countries allowed this state of affairs? If not, then why the naff didn't we think first, or at least once it started to go wrong?
Dare I wonder how much the water company owners paid UK political parties over the last 10+ years?
Oh I’ve no doubt the odd little brown envelope or Christmas box found its way to those responsible; maybe a seat on the board here and there.
No other country in the world has allowed its water industry to fall into the hands of private companies. These companies have been rinsing the public for years and will continue to do.
Privatisation in the 80s was a national disgrace. I thought so at the time. The concept of me being asked to buy shares in what I already owned was laughable and fundamentally wrong. That’s why I didn’t entertain the idea on any of the utilities. It just seemed the maddest thing ever (and was until some swivel eyed loons came up with Brexit) and what subsequently happened was totally predictable. There’s no ‘we didn’t realise’. Even my cat Basil thought it dopey and could see what’d happen.
The shifty tories punted the idea at the time that private money would be invested in renewing infrastructure. That was ludicrous. Of course it was never going to happen. Private companies are there to maximise profit and if you have a monopoly on something that’s literally the stuff of life like water, you can rob people almost limitlessly to fill shareholders pockets. Buffet money - help yourself!
Regulators? Easily navigated and the powers invested in them were so negligible as to ask the question of whether politicians were bought and paid for to make it so. As honourable, honest, caring people, I’m sure that is not the case with our politicians….
There are solutions, but this government isn’t too interested as the life of their Parliament is a lot shorter than seeing any tangible result. That’s why things like targeting non labour voters and reducing voting age to 16 is far more important. Party first.
3
Review of Water Industry on 09:24 - Jul 21 with 195 views
'Shares in stock market-listed water companies are rising a little in early trading, as investors digest Sir Jon Cunliffe’s report into the sector.'
'New turnaround regime could allow 'regulatory forbearance' for water companies Water companies could be let off fines if the government accepts one of the recommendations from the Independent Water Commission.
Today’s report argues that a formal turnaround regime should be established to help improve the performance of strugging water companies, through new government legislation.
That regime should allow “enhanced power of direction” (allowing regulators to steer a company) as well as regulatory forbearance (allowing companies to dodge financial penalties).
The report says:
The Commission believes it is important that, where companies fail to comply with requirements, there is accountability and consequence. However, these may sometimes need to be pursued within the context of the broader public interest.'
...I think this can be translated as telling the public to bend over and take their medicine!
"They break our legs and tell us to be grateful when they offer us crutches."
Review of Water Industry on 09:20 - Jul 21 by Churchman
Oh I’ve no doubt the odd little brown envelope or Christmas box found its way to those responsible; maybe a seat on the board here and there.
No other country in the world has allowed its water industry to fall into the hands of private companies. These companies have been rinsing the public for years and will continue to do.
Privatisation in the 80s was a national disgrace. I thought so at the time. The concept of me being asked to buy shares in what I already owned was laughable and fundamentally wrong. That’s why I didn’t entertain the idea on any of the utilities. It just seemed the maddest thing ever (and was until some swivel eyed loons came up with Brexit) and what subsequently happened was totally predictable. There’s no ‘we didn’t realise’. Even my cat Basil thought it dopey and could see what’d happen.
The shifty tories punted the idea at the time that private money would be invested in renewing infrastructure. That was ludicrous. Of course it was never going to happen. Private companies are there to maximise profit and if you have a monopoly on something that’s literally the stuff of life like water, you can rob people almost limitlessly to fill shareholders pockets. Buffet money - help yourself!
Regulators? Easily navigated and the powers invested in them were so negligible as to ask the question of whether politicians were bought and paid for to make it so. As honourable, honest, caring people, I’m sure that is not the case with our politicians….
There are solutions, but this government isn’t too interested as the life of their Parliament is a lot shorter than seeing any tangible result. That’s why things like targeting non labour voters and reducing voting age to 16 is far more important. Party first.
Not just the fact that we were being sold something that was already ours....
It was also the madness of the underpricing of the initial sale
BT shares were selling for double on the Stock Exchange less than a week after issue as small investors were cashing out for the quick win. Share-Owning democracy, my arse.
Royal Mail shares were selling for double less than 48 hours after the initial issue
While the geniuses ( Genii ?) who dreamt up the whole racket were patting themselves on the back for a job well done
Literally any moron can undersell.....
Tara Lunnun or tar'n'fevvas for all of those involved
0
Review of Water Industry on 10:06 - Jul 21 with 117 views
Review of Water Industry on 08:37 - Jul 21 by Freddies_Ears
I simply do not understand how it is even legal to load a company with its own debt, or to pay dividends other than out of profit. The water company owners have simply destroyed the value in the industry, extracting tens of billions of £ rather than investing it back into sewage treatment, new reservoirs, leak fixing etc etc etc. Ofwat failed to regulate, either because it did not have the power (govt issue) or because it was utterly incompetent.
Have any other countries allowed this state of affairs? If not, then why the naff didn't we think first, or at least once it started to go wrong?
Dare I wonder how much the water company owners paid UK political parties over the last 10+ years?
in terms of 'loading a company with its own debt', it's obviously legal for companies to borrow.
capital expenditure has always exceeded borrowing in the water industry. why is that borrowing then considered to be funding dividends rather than funding capital expenditure?
but you're right ofwat has regulated all of this and the failure is theirs. they have regulated the rate of return and dividends, investment, and prices.
over the past 15 years prices have been held down below a level that can both fund the required investment and also fund what ofwat has determined to be a fair price of capital (the return to shareholders). in that situation the only way of funding investment and also paying out the agreed dividend has been to borrow. ofwat's complete failure, and its holding down prices in real terms, is a big part of the story here.
And so as the loose-bowelled pigeon of time swoops low over the unsuspecting tourist of destiny, and the flatulent skunk of fate wanders into the air-conditioning system of eternity, I notice it's the end of the show
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