07-13-2023, 07:23 PM
The Liberal Party has watched the further revelations on the UK water industry and in particular Thames Water, with growing concern.
In all of this it is becoming increasing obvious that the water regular OFWAT has been singular negligent in its monitoring and enforcement of the privatised water industry.
In the first instance is appears to have failed to ensure water companies debt does not exceed a debt gearing of 60%. Thames Waters gearing is reported to be more than 77%, with an industry average of 68%, and only 3 companies out of 10 compliant with this rule.
The use of debt has allowed water companies to pay out undeserved dividends whilst repayment obligations have affected their ability to invest in water security and environmental protection.
OFWAT must also contend with the continued investigation by the environment agency into what is called non-compliance in the management of wastewater works which may result in criminal proceeding against the industry over the excessive discharge of untreated sewage.
The party believes government intervention to ensure the regulator meets it statutory duties is inevitable if public trust is to be restored in OFWAT.
In all of this it is becoming increasing obvious that the water regular OFWAT has been singular negligent in its monitoring and enforcement of the privatised water industry.
In the first instance is appears to have failed to ensure water companies debt does not exceed a debt gearing of 60%. Thames Waters gearing is reported to be more than 77%, with an industry average of 68%, and only 3 companies out of 10 compliant with this rule.
The use of debt has allowed water companies to pay out undeserved dividends whilst repayment obligations have affected their ability to invest in water security and environmental protection.
OFWAT must also contend with the continued investigation by the environment agency into what is called non-compliance in the management of wastewater works which may result in criminal proceeding against the industry over the excessive discharge of untreated sewage.
The party believes government intervention to ensure the regulator meets it statutory duties is inevitable if public trust is to be restored in OFWAT.