Water companies have been immensely profitable with typically 15-25% profit, where ofwat have been a very weak and gullible quango. This is a disgrace for a monopoly, where you would expect profits to be in the 5-10% region.

If we had a water grid, then it would enable you to buy your water from a number of suppliers. Now if that supplier sent it via the water grid and in the local area 30% was lost through leaks, then the local company would have to make up the difference at no cost. A bit of an incentive to fix your leaks, with typically 30% of water lost due to these and there would be real competition.

I have no problem with privatization, but two conditions should have applied:
1. No company that a Government has any shares in can own any shares in the water company as all that has happened with the majority of privatized companies is they have gone from being UK Government owned, the French and German Government owned.

2. If they are taken over by another company, they can own all the shares, but they can't dissolve or amalgamate the company and they have to publish their accounts. This would stop the hiding of excessive profits, within bigger companies, which is going on at the moment.

The water companies have spent something like £175bn on meeting EU water standards and £20bn on pipe repairs since privatization, which is why there is about 30% lost through leakage. Thames Water have tried to build a reservoir near Didcot, but were turned down at the planning stage.

If your water bill is calculated due the ratable value of your house, then this is the only industry I know that can charge you the same and then ban you from using their product with a hosepipe ban. If you or me tried that as a business practice we would end up inside.

If you are a small household and not on a water meter then worth considering as you should save money.

Where ofwat is weak they have allowed 5.2% inflation +3% bill rise this year. To make them improve efficiency and productivity inline with normal industry averages then this should be a maximum of inflation - 2%. Unfortunately all cartels like: water, trains energy, public services don't get more productive as there is no competition to make them do so.
