Water Companies Make £2billion Profits
THE British public is saddled with rising water bills and annual hosepipe bans, and water companies up and down the country are laughing all the way to the bank.
New figures to be released this week by the big water and sewerage companies will show that the industry has once again enjoyed a major increase in profits.
South West Water’s parent group, Pennon, is expected to see its profits climb from £142million to £157million while the likes of Northumbrian Water and Yorkshire Water’s owner, Kelda, are expected to show increases of six and eight per cent respectively.
These figures will no doubt anger customers who have seen water bills rise at above inflation rates recently.
Industry regulator Ofwat expected to come under fire for failing to protect the needs of customers.
In 2005, the industry regulator announced that companies could increase their prices by more the current rate of inflation on condition that they invested in their own, rather leaky infrastructures.
However, while the amount of water from leaks has fallen, four out of 22 companies in England and Wales still fail to hit their leakage target, amounting to an incredible 3.6 billion litres of drinking water escaping out of pipes and mains every day.
And then they tell us to stop watering our gardens?
A spokesman for Ofwat says: “We set the prices as low as possible, while allowing water companies to make investments. Our primary objective is to make sure customers pay no more than they ought to.”
I’ve had enough. I’m going to turn my lawn into a wetland this summer and attract wading birds. Turn off the water and kills the birds? They wouldn’t dare…
Posted: 4th, June 2007 | In: Money Comment | TrackBack | Permalink
