The water industry is a classic illustration of the harms of privatisation and the contradiction of a Government who claim that privatisation is more efficient while giving companies free rein to profit by damaging the environment.
In 2021, Severn Trent Water—the water company in my constituency—was fined £1 million for a 2018 raw sewage discharge that lasted for hours, and £500,000 for a separate incident. In the previous year, the firm had been fined £800,000 for similar issues. By 2020 and 2021, Severn Trent Water had discharged untreated sewage into our waterways and seas 60,000 times, with an average duration of almost 10 hours per incident. Despite that, the company boasted that it had received the Government’s highest four-star rating.
Incredibly, Severn Trent’s chief executive is now advising the Government on water, waste discharges and biodiversity.
At the same time as it pollutes, Severn Trent is paying out huge dividends to shareholders, including a recent payout of 43p per share on more than 254 million shares—more than £109 million to wealthy investors. It pays out dividends twice a year. Severn Trent Water was only the third worst offender in England among water companies. According to the most recent DEFRA data, there were more than 370,000 sewage discharges a year, but fines are rarely imposed. The foxes are running the chicken coop. The Government described Severn Trent’s actions as “completely unacceptable”, but they reward it for its recklessness.
It is evident from those figures that the privatisation of the UK’s water supply is a disaster for our people, who pay a heavy price financially and in quality of life, and for nature and our environment. It is a disaster for everyone, in fact, apart from the water companies and their investors, who make millions while they pollute. It is clear that the only real solution to this situation is full renationalisation so that those who are running services are accountable and any surpluses can drive reinvestment and lower bills, instead of fattening corporate profits and offshore bank accounts.
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