Water Companies: Regulation and Financial Stability
Debate between Olly Glover and Luke Charters(1 month ago)
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Olly Glover (Didcot and Wantage) (LD)
It is a pleasure to serve under your chairmanship, Mr Pritchard. I congratulate my hon. Friend the Member for Westmorland and Lonsdale (Tim Farron) on securing this critically important debate. In my Oxfordshire constituency of Didcot and Wantage, over 90% of water infrastructure is managed by Thames Water—a de facto monopoly. The constituency impacts of the current arrangements are stark. In south Oxfordshire, sewage from storm overflows into water bodies exceeded 11,000 hours in 2023 during 810 spills. Recently, in East Hanney and Didcot, overwhelmed sewage pumps have led to flooding, including with contaminated water.
Thames Water was the worst performer in the country for leaks, leaking 570.4 megalitres a day last year, or more than 200 billion litres in total, equivalent to just under a quarter of its entire water supply. Analysts estimate that Thames Water’s current debt amounts to about 80% of the value of its business, making it the most heavily indebted of the water companies in England and Wales. At the same time, Thames Water has said that its bills need to rise by 59% between 2025 and 2030 or it will not be able to recover from its financial crisis.
It is in that context that proposals for a reservoir in my constituency are causing concern to local residents. Even putting to one side the fact that many are sceptical of the case for the reservoir, there is concern about whether Thames Water can be trusted to competently programme, manage and deliver what would be the second largest reservoir in the country and one of the largest civil engineering projects in the land.
Mr Charters
Since 2020, £41 million in executive bonuses has been paid out by companies such as Thames Water. That is a disgrace that the Conservatives allowed to happen. Does the hon. Gentleman agree that change is needed to stop companies such as Thames Water paying such ridiculous bonuses when their house is clearly not in order?
Olly Glover
The hon. Member has anticipated the next line of my remarks: that it is time for change on bonuses and many other aspects of the current workings of the water industry.
I am pleased to see the Government initiating today an independent review of the water sector, including the question of regulation, but I hope that they will also consider some bold Liberal Democrat ideas, such as setting legally binding targets to prevent sewage dumping in bathing waters and highly sensitive nature sites by 2030, giving local environmental groups a place on water company boards, and introducing a single social tariff for water bills to help to eliminate water poverty in the course of this and future Parliaments.
Thank you, Mr Pritchard, for the opportunity to speak. I look forward to hearing the Minister’s response.