Nationalizing UK Water Companies Will Only Result In Higher Bills | OilPrice.com

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Nationalizing UK Water Companies Will Only Result In Higher Bills | OilPrice.com
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The ongoing sewage debacle has driven righteous anger with Britain’s privatised water companies and the imposition of large fines.

- Jul 13, 2023, 12:30 PM CDT

There are no easy solutions for Britain’s embattled water and sewage providers, just trade-offs and open questions. This is particularly true for Thames Water, which has been staring down the barrel of renationalisation after recent financial woes. Industry critics claim Thames Water and its ilk have taken out huge debts and provided generous returns to shareholders while dumping sewage and failing to address leakage.

The water industry requires investment, but there’s little reason to believe that our cash-strapped government would provide the necessary capital injection. We know this tendency from the experience before privatisation: decades of underinvestment, poor water quality and polluted rivers and beaches. Politicians tend to prioritise health and pension spending today over longer-term infrastructure investments.

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