Water Companies: Financial Resilience

Lord Archbishop of Canterbury Excerpts

Tuesday 23rd July 2024 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

There are clearly serious problems in the water industry that have been building up for a number of years. We are looking at all options and ways forward to improve the situation, and, clearly, modelling of how companies operate will be part of those discussions.

[The Archbishop of Canterbury]

I join in congratulating the noble Baroness on her appointment. Picking up on the previous question, which is very much the point, is it not true that the shareholders of Thames Water and others have made extraordinary returns by financial engineering, well in excess of what one would expect to make from a utility, which should be low risk and low reward? In looking at the future structure, will the Government put in place measures to prevent the over-return to shareholders by means of financial engineering, and limit the upside so that utilities are run basically for their customers and not simply for the short-term gain of those who have them?