Compulsory water metering and over charging – scandals of water privatisation in England continue If we want to see the consequences
of water privatisation, we need only look to England and Wales, where water
services were privatised in 1989. This has brought about a steady
rise in bills and a deteriorating service. Over the next five years
water bills are forecast to rise by 18%. Recently there have been
droughts in southern England, with one company even introducing compulsory
metering. However, the main problem with water in England is not
a scarcity of water but the refusal of the private water companies to adequately
invest in the network. This has even seen reservoirs sold off or
“rested”. Their priority is not providing a public service or promoting
public health but in maximising profits for their shareholders and the
salaries of their executives. Another example of how water firms
are lining their pockets has been the overcharging of customers by Severn
Trent Water. This involved the deliberate miscalculation of data
on which the firm’s price plan for the period 2005 to 2010 was based.
This became known when a whistleblower reported the company to the water
regulator Ofwat. After an investigation, it found that the water
firm had overcharged by £2 to £3 per household a year, a total
of £2m during 2004- 05. Severn Trent Water has been forced
to issue an apology and is to make an average refund of £4 to each
customer in their next bill.
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