Campaigners are urging for Thames Water and other struggling water companies to be placed under special administration by the government to implement necessary reforms in the industry.
Special administration would allow the government to take control of failing companies, remove directors, and halt dividends to shareholders, potentially transferring ownership to new entities.
Groups like Save Windermere have highlighted widespread sewage pollution issues and are supported by an academic advocating for special administration as a solution without financial burden on taxpayers.
Prof Ewan McGaughey emphasized that increased investment in water infrastructure is crucial, suggesting that existing laws can facilitate the transition of failed companies into public ownership.
The current privatized water industry in England has seen significant dividend payouts while accumulating substantial debts, with Thames Water facing financial challenges and credit downgrades.
Despite resistance to public ownership from some officials, efforts are being made to enhance regulation and penalties within the sector instead of pursuing full nationalization.
2024-10-01 04:40:44
Original from www.theguardian.com