Environment, Food and Rural Affairs
Debate between Angela Eagle and Rebecca Pow(1 year, 5 months ago)
Ministerial CorrectionsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Rebecca Pow
Where water companies underperform and do not meet their targets, a process is in place whereby basically they have to credit the money back to their customers. Last year, £132 million was credited back in that respect. So the regulator does have the tools to do that. It has tightened up so many of its measures, all of which will affect all the water companies.
Dame Angela Eagle (Wallasey) (Lab)
When they were privatised, water companies had all the debt written off, so they started with zero. Since then, they have borrowed £53 billion, much of which has been used to help pay £72 billion in dividends. The investment has been made by borrowing and putting it on to customers’ bills. Now, the ratings agency S&P has negative outlooks for two thirds of the UK water companies it rates, because they are over-leveraged and took out too much debt in an era of low interest, which they now have to pay back. This is not a triumph but a huge problem for the resilience of our water industry. What will the Minister do when water companies start falling over?
Rebecca Pow
For information, Thames Water itself has not paid any dividends for the last six years. Ofwat will rightly hold companies to account when they do not clearly demonstrate the link between dividends and performance. We made that possible through the landmark Environment Act.
[Official Report, 28 June 2023, Vol. 735, c. 288.]
Letter of correction from the Under-Secretary of State for Environment, Food and Rural Affairs, the hon. Member for Taunton Deane (Rebecca Pow):
An error has been identified in my response to the hon. Member for Wallasey (Dame Angela Eagle).
The correct response should have been:
Water Industry: Financial Resilience
Debate between Angela Eagle and Rebecca Pow(1 year, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
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Rebecca Pow
That is what we want for all our customers. That is why we have launched our plan for water to pull everything together to ensure that we deal with any pollution incidents, water supply issues and the future of the water industry. It is why we have set our targets and produced our storm sewage overflow plan, and why the water companies will have to spend £56 billion on capital investment by 2050 to address that. Every water company, including Thames Water, has to make an action plan for each of its storm sewage overflows. Thames Water will do that.
Dame Angela Eagle (Wallasey) (Lab)
When they were privatised, water companies had all the debt written off, so they started with zero. Since then, they have borrowed £53 billion, much of which has been used to help pay £72 billion in dividends. The investment has been made by borrowing and putting it on to customers’ bills. Now, the ratings agency S&P has negative outlooks for two thirds of the UK water companies it rates, because they are over-leveraged and took out too much debt in an era of low interest, which they now have to pay back. This is not a triumph but a huge problem for the resilience of our water industry. What will the Minister do when water companies start falling over?
Rebecca Pow
For information, Thames Water itself has not paid any dividends for the last six years. Ofwat will rightly hold companies to account when they do not clearly demonstrate the link between dividends and performance. We made that possible through the landmark Environment Act.
Thames in Oxford: Bathing Water Status
Debate between Angela Eagle and Rebecca Pow(3 years, 1 month ago)
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Dame Angela Eagle (in the Chair)
Order. We are talking about bathing water in the Thames at the moment. I have given some leeway, but let us not stray too far.
Rebecca Pow
Thank you very much, Dame Angela, for getting us back on track and enabling us to get back to Oxford. However, my hon. Friend made a very good point and we genuinely understand everybody’s strength of feeling about swimming in their local area.