The Financial Times has published two separate articles flagging up decades of under-investment by the water companies in their networks while paying £73 billion in dividends to shareholders.
The articles draw on new research by the leading business publication which shows that six out of 10 companies increased their capital investment in the 1990s as part of their work to meet new European Union targets under EU water quality Directives.
However, according to the FT, the level of investment has not been sustained.
In an article dated 22nd December entitled England’s water groups slashed investment in sewage network in recent decades, the newspapersays“eight of the 10 biggest water and wastewater companies are investing less in infrastructure now than they were in the1990s.”
A separate article published on 28th December entitled Sewage spills highlight decades of under-investment at England’s water companies suggests that “investment fell as dividends fl owed”
“Research by the Financial Times showed that total capital expenditure by the 10 biggest water and sewage monopolies had declined by 15 per cent since the 1990s — from £5.7bn to £4.8bn a year.”, the article states.
According to the FT, since privatisation in the 1990 by the ten companies have borrowed £53 billion, much of which “has been used not for new investment but to pay £72 billion in dividends.”
The FT has included the following comment by Professor Dieter Helm, leading utilities expert at Oxford University and previously chair of the Government’s independent advisory Natural Capital Committee which ran from 2012 to December 2020: “The purpose of private water companies has indeed been to profit-maximise.”
The article says Helm argues it was “implausible” that Ofwat could allow companies to “raise prices high enough to pay for the extent of the upgrades required for the (sewage) network during the next regulatory period” and that “wider reform of the regulatory system was needed.”
Both articles make reference to continuing public anger on the issues of thousands of storm overflows which allow water companies to discharge sewage into rivers and seas following heavy rain.
The story on 28th December says:
"While public anger towards water companies has been bubbling for years, it has erupted in the past few months, as unknown quantities of raw sewage and stormwater have repeatedly been poured into Britain’s rivers and seas, increasing pressure on the government and regulators to act."
Amiblu, a global leader in Glass Reinforced Plastic (GRP) pipe systems for wastewater, stormwater, drinking water, irrigation, hydropower, and industrial applications, has announced the appointment of Martyn Turton as its Sales Director for the UK & Ireland, driving strategic market development in the infrastructure and water sectors, effective immediately.
As a project manager at Metasphere, a Grundfos-owned remote telemetry company at the cutting edge of innovation, Fey McHarg, has witnessed firsthand how the intelligent harnessing of data, specifically through the data-as-a-service model, is fundamentally reshaping and revolutionising the water sector.
Attendees at next month’s National Civils Show, Floodex, National Drainage Show and Waterways Management on 26th and 27th November are set to benefit from an expert speaker line-up and the opportunity to visit a wide range of exhibitors all co-located in one place at Excel, London, one of the UK’s leading international exhibition and convention centres.
Tackling leakage is one of the fastest and most cost-effective ways for utilities to bolster water security, writes Ben Crabtree, Product Line Director, Ovarro, revealing how the potential of smart technologies is being demonstrated around the world.
Hear how United Utilities is accelerating its investment to reduce spills from storm overflows across the Northwest.
Find out more about the remarkable career opportunities on offer at WSP - scroll down to watch the inspirational video. 
What is to be done about the UK’s failing utilities? Listen to Professor Dieter Helm explore the options to tackle the UK’s failing utilities – Thames Water, the Royal Mail and Network Rail in particular.