Mayors and other local politicians could be given powers to oversee water companies under plans being considered by the UK government to bring utilities under greater public control. Local leaders would have the power to direct some parts of water companies’ spending and hold bosses to account over bills and sewage discharges as part of the proposals. It comes as Andy Burnham faces growing pressure to improve the oversight of the water industry, with millions of households facing steep bill increases, leaking infrastructure and sewage spills.
Giving local political leaders more authority over the sector was a key recommendation in Sir Jon Cunliffe’s landmark review of water companies last year. The review found it would “represent a significant change, and ensure that local voices, customers and experts have stronger authority over companies’ boards’ decisions on investment priorities”. These regional authorities could include a local government figure, a mayor, an independent chair, experts and other representatives to cover affected sectors such as transport and agriculture.
While there have been no firm decisions yet, officials in the Department for Environment, Food and Rural Affairs are keen on the idea, according to the BBC. It reported that the plan was among a number of ideas that the government was exploring to introduce greater public control of water companies. Burnham has repeatedly promised to take public utilities into public control, including water companies.
Before he became MP for Makerfield, he told the Guardian that he intended to nationalise Thames Water, the water company that serves 16 million customers and has been on the verge of collapse for more than two years. At the end of March the regulated value of Thames’s assets was estimated at £23bn, while its net debt increased to £18.5bn. Ministers are considering whether to put the company into special administration or accept a solution put forward by creditors to maintain private sector control after a debt write-off.
In the meantime, customer dissatisfaction with the water industry has continued to grow. The number of complaints made by households about water companies is up 48% year on year, according to the Consumer Council for Water, the steepest annual rise in two decades. Mike Keil, CCW’s chief executive, said the numbers reflect “just how dissatisfied many people still are with the state of the water sector and the enormous task water companies face in rebuilding consumer trust”.
A government spokesperson said: “Our water industry has not been working for people for far too long. We’re bringing in tougher regulation, stronger enforcement and greater accountability, so water companies deliver for customers and the environment.”
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