Water Companies: Customer Bills

Viscount Hailsham Excerpts

Tuesday 23rd May 2023 Lords Chamber

[Lord Benyon (Con)]

First, the noble Baroness suggests that there was no sewage going into rivers before water companies came along. Underinvestment when they were nationalised businesses was at historic levels, and our bathing waters were much worse than they are today. I am not saying for a moment that there are not serious problems. This Government are—if I can steal a soundbite—tough on sewage in rivers and tough on the causes of sewage in rivers. We want to be absolutely clear that everything that happens comes at a price. We want companies to be able to pay out dividends, because that is what encourages investment in our water sector. It is about getting that balance right.

[Viscount Hailsham (Con)]

Would it not be appropriate for executive bonuses to be linked to challenging reductions in pollution?

[Lord Benyon (Con)]

My noble friend makes a very good point. Water is the only utility business where the regulator does link reward for company executives and dividend payments to performance. It is the only sector of privatised utilities where that link is made.