The once publicly owned largest water supplier in England is facing bankruptcy. Thames Water, the largest water supplier in England, is on the verge of bankruptcy. And all because the management of a private company spent money only on paying dividends to shareholders and paying off the subsequently accumulated debts, the total amount of which now totals £ 14 billion. The chairman of the board of the company has already quit (with a golden handshake), and clients and ordinary taxpayers will have to pay for her ‘mistakes’, says German TV channel Das Erste.
The British company Thames Water provides water to 15 million people in London and other regions in the southeast of England. It was privatized back in 1989, but at that time there were no debts for it. Since then, the company has accumulated a huge amount of debt. 

Since, the country has again begun to discuss the consequences of privatization. The company is owned by a group of venture capitalists from pension funds and private equity funds. The largest share of 32% belongs to the Canadian pension fund from Ontario.

‘What happened there is an absolute scandal. High dividends were paid, and huge debts were accumulated. Customer bills have skyrocketed and untreated water is being dumped into rivers,’ said British Labour Party member Ed Miliband. Studies have shown that after the privatization of water supply in 1989, the British by 2015, taking into account inflation, began to pay 40% more for water.   

It was more important for the owners and managers of Thames Water to pay dividends than to invest in the pipeline system. They sucked everything that was possible out of the enterprise and in parallel accumulated huge debts. Now all the damage will have to be covered by public funds. Once again, customers and ordinary taxpayers will pay the price for company (criminal behaviour) mismanagement and poor regulation. Now the state should intervene in the situation and at least partially buy out the enterprise. 

MAKE YOUR VOICE HEARD BY SHARING OUR STORIES

THE ALL LIES INVASION Mike Walsh TWO BOOKS IN ONE – SAVE MONEY A thought-provoking illustrated compendium of bizarre, amusing examples of Allied wartime propaganda.  38 rave reviews over 130 illustrated stories: the lies that betrayed millions of Allied servicemen and their families. ONLY €27.

BUY MICHAEL WALSH’S BOOKS HERE