Water Industry

From WikiCorporates
Jump to navigation Jump to search
© Scott Wallace, 2008

Single biggest reason water should never be privatised: no-one can live without it. Access to water must never be restricted by someone's ability to pay for it. Who do Water and Air Belong to? Can Economic Reason Conserve the Planet? (Mar.03.2009)


WIP: Currently working through:

See also Talk page for more.

Links

Articles

2021

2020

2018

  • Dec.18.2018: Cash Cow: Who Owns Your Water, and How They'll Try To Keep It. We’ve mapped out the ownership of both the nine regional companies and the overall national system, so you can find out which billionaire, bank, investment fund, foreign govt or pension fund is cashing in. Thanks to the radical way England’s water was privatised, the companies themselves own all the pipes, reservoirs, treatment plants etc that together make up the water and sewerage system. Many others just contracted out management of the system, but this would have been far too half-hearted for the Thatcher govt that pushed through privatisation in 1989. To make the water companies even more attractive to global capital, the New Labour govt decided in 2002 to amend the licences under which they ran the supply. As a result, the companies cannot lose those licences to a rival unless the govt has given them “at least 25 years’ notice”. This means the current contracts have to be broken. 63% of the overall supply is owned by just 20 organisations. At least 85% is owned by so-called ‘institutional investors’. It’s not possible for members of the public to buy shares in 6 of the companies, as they have been bought out and taken off the stock market. more... Corporate Watch.
  • Sept.04.2018: Water companies ‘must go further’ to plug leaks. The water industry has been urged by the National Infrastructure Commission to go much further in plugging leaks after some of the biggest regional monopolies unveiled plans to patch up their pipelines but only at the minimum indicated by the regulator. Yesterday the 10 regional water and sewerage monopolies delivered their charging and spending plans for the next 5-year regulatory period from 2020. OfWat, the regulator, will ratify or amend them over the next year. Amid outrage that in some regions 25% of treated water is lost through leaks in pipes every day, OfWat has signalled that it expects the companies to come up with plans that will cut leakage by at least 15% in the period up to 2025. That is seen as a bare minimum and senior OfWat sources have indicated that the regulator expects the companies to increase spending to cut leakage rates further. Yesterday, however, 3 of the biggest leakage offenders — Thames Water, the largest supplier in the country looking after about a sixth of all households; Severn Trent, the quoted Midlands supplier; and United Utilities, the northwest supplier that this summer threatened hose pipe bans on its customers — all committed to cut leaks by only 15%. In addition to increasing demands from customer groups for an end to years of rising bills, the privatised industry has come under huge political pressure. The Labour leadership has called for the return of the industry to public ownership, while Michael Gove, the environment secretary, has been critical of companies paying their chief executives more than £2m a year. OfWat has been highly critical, too, of the companies’ corporate governance structures and lack of transparency and of their loading up on debt to use cash to pay their overseas shareholders. The most eye-catching initiative among the water companies has been at South West Water, part of Pennon, the quoted group. It has told OfWat that it is drawing up plans to give its 800,000 household customers in the West Country and along the south coast a tangible stake in the business, either through the issuing of dividend-paying “shadow shares” in South West Water or through the direct issue of stock market shares in Pennon. Robert Lea, The Times.
  • Jul.25.2018: Water Company Shareholders Make £6.5bn in 5 years. Taken from an analysis of company accounts, the figures reveal the huge profits the owners of England’s nine water and sewerage companies are making. Meanwhile, bills remain unaffordable to many, millions of litres of water are leaked every day and the companies don’t do enough to stop sewage spills and other pollution. Done in collaboration with the GMB union, the research follows last month’s revelations about the huge salaries and bonuses enjoyed by the companies’ CEOs. Severn Trent Water, United Utilities, Anglian Water, Northumbrian Water, South West Water, Southern Water, Thames Water, Wessex Water, Yorkshire Water. The vast majority (close to £5 billion) of the payouts were made as dividends. The rest came as interest on so-called ‘shareholder loans’ – money certain companies have borrowed from their owners. Some companies pay the interest annually, while others rack up (or ‘accrue’) a pot to be paid out in future years. When we first exposed it in 2013, this financing scheme, run through the Channel Islands, was giving these shareholders a nice return on their investment, while cutting the water companies’ UK tax bills (as interest is taken off the companies’ profit before tax). But the shareholders and bosses of all the companies are enriching themselves at people’s expense, not just those avoiding tax. These new figures show the biggest payouts came from Severn Trent and United Utilities. The main problem with the system is plain old profiteering. Corporate Watch.
  • Jun.05.2018: Water UK defends sector as GMB launches nationalisation campaign. Water UK has warned a renationalised water sector could suffer from a lack of investment as GMB launched its 'Take Back the Tap' campaign to take the industry back into public ownership. The trade union has released details from its joint investigation with Corporate Watch into water company accounts showing that 9 privatised water company bosses received £58 million in salary, bonuses, pensions and other benefits over the past 5 years. It also showed that the bosses of England’s privatised water and sewerage companies together received £11.3 million in 2017 alone. GMB said the average pay including salary, bonuses, pensions and other benefits totalled £1,254,000 last year – a figure that is six times higher than the pay and pension of the Prime Minister – and highlighted the National Audit Office] report showing that consumer water bills in England and Wales have increased by 40% above inflation since privatisation in 1989. GMB general secretary Tim Roache said: “It is a national scandal over the last 5 years England’s hard-pressed water customers have been forced to splash out £58 million through their bills to go into the pockets of just 9 individuals. Water UK, which represents the water companies, emphasised the progress that has been made since 1989 and warned that if it were to be renationalised there was a risk that investment might be cut to balance the books. “Water companies have invested around £150 billion on improvements and infrastructure in the last 30 years, and continue to spend £8 billion a year to keep on improving," Water UK chief executive Michael Roberts said. "If the water industry was owned and run by the government in England, it is far from obvious that it would be a priority for ministers, given the pressures they face to spend on areas like health and education.” WWT.
  • Jun.05.2018: Water bosses' £58m pay over last five years a 'national scandal'. The bosses of England’s privatised water companies have been criticised for banking £58m in pay and benefits over the last 5 years while customers have been faced with above-inflation rises in their water bills. The GMB union said the chief executives of England’s 9 water and sewage companies were “fat cats” earning “staggering sums” from the management of a natural resource. Household water bills have risen by 40% above inflation since the industry was privatised in 1989. Rebecca Long BaileyWikipedia-W.svg. Gove said Anglian Water and Southern Water paid no corporation tax last year, while Thames Water “has paid no corporation tax for a decade”. Liv Garfield, the chief executive of Severn Trent, was paid £2.45m last year. United Utilities chief executive Steve Mogford collected £2.3m. His pay has increased by 49% since 2013. Rupert Neate, The Guardian.
  • Apr.17.2018: Labour MP savages party’s water policy. In a speech at a water industry conference in Manchester Angela Smith, chairwoman of the all-party parliamentary group for water, denounces the nationalisation proposals promoted by John McDonnell, the shadow chancellor, as ideological and founded in the “politics of the past”. The water sector was privatised nearly 30 years ago in the wave of industrial and utility reforms ordered by Margaret Thatcher. It is divided into 10 regional monopolies, plus a handful of small local suppliers. The industry, particularly Thames Water, its largest supplier, has been much-criticised for taking on huge debts to pay investors large dividends while household bills go up. She will tell the Twenty65 Water Conference that a Labour govt should focus on a “bold reform” of OfWat. She will say that the water regulator is unambitious, bureaucratic and that its 5-year control periods and pricing mechanisms are outdated. Robert Lea, The Times. Times article is here: Water industry needs reform, not 1970s-style posturing.
  • Apr.26.2018: England’s water taps may run dry as drought looms. England faces a one in four chance that the taps will run dry within the next 30 years unless the water industry undertakes a major drive to create a new national water system. The National Infrastructure Commission's (NIC) warned that England’s water network is already under strain, and could leave large numbers of homes and businesses without water for extended periods unless ministers adopt their recommendations “without delay”. The NIC called on the govt to set up a new national water system which can transfer water supply from the abundant reservoirs in the north of the country to the drier, more densely populated areas in the south which are at risk of severe drought. England’s low rainfall pushed Southern Water, which supplies 532m litres of water every day, to apply to the Environment Agency earlier this year for a drought permit so it could take extra water from the Medway River to refill its Bewl Water Reservoir. NIC boss Sir John Armitt also warned water companies that they will need to stem the network’s leaks. He also called on customers to reduce their water demand to help ensure that the water network is fit “to meet future pressures”. "Climate change, an increasing population – particularly in the drier south and east of England bring further challenges," he said. Water companies should also have the option to install compulsory water meters, so homes and businesses in their area can carefully monitor how much they consume. Jillian Ambrose, The Telegraph.
  • Mar.25.2018: Water utilities cut pensions while paying out generous dividends. Pressure to nationalise grows as profits go to shareholders and executives. Two of Britain’s biggest water companies are slashing pension benefits for employees, despite coming under fire for lucrative payouts to shareholders and executives. United Utilities, the water monopoly that supplies the north west of England and parts of Wales, closed its final salary pension scheme to new members in 2006. From Apr.01, it will reduce benefits for existing members by moving them into a “hybrid” scheme. UU paid £265m in dividends last year, while Steve Mogford, its chief executive, received a pay package of £2.3m in the year to March 2017, including £159,000 in pension benefits. He also received an additional £1.7m from share sales in the business. Private equity owned Anglian Water, which supplies the East of England, first closed its final salary pension scheme to new members in 2002. But it is now moving all current and former employees into a defined contribution scheme with reduced benefits. Anglian had a £279m pension deficit at its last valuation one year ago. Anglian Water paid £128m in dividends in 2016/17, while Peter Simpson, its chief executive, earned £1.5m during the period. The changes to the pensions schemes will fuel criticism of England’s 9 large water companies, which have been accused of failures on pollution and leakage while raising customer bills, increasing pension deficits, paying little or no corporation tax and rewarding shareholders and executives. According to research by Greenwich University, the privatised water utilities paid 95% of their profits — or £18.1bn — to shareholders between 2007–2016, instead of reinvesting the money in their networks. Linkback: Thames Water, Prospect Gill Plimmer, The Financial Times.
  • Feb.11.2018: Private water payouts are a public scandal, says Labour. John McDonnell promises renationalisation of water, energy and rail under Labour. Labour launched a full-frontal attack on the privatised water industry last night, accusing companies of paying out the “scandalous” sum of £13.5bn in dividends to shareholders since 2010, while claiming huge tax breaks and forcing up prices for millions of customers. Toby Helm, The Guardian.
  • Mar.06.2018: Ill-prepared water firms blamed for taps running dry as RAF delivers supplies in Cumbria. Ofwat said Water companies have "fallen short" on planning for cold weather, as thousands of homes across the country were without supplies because of burst water mains and leaks. Chief executive Rachel Fletcher said: "This weather was forecast in advance. Water companies have been warned time and again that they need to be better at planning ahead to deal with these sorts of situations". Valentine Low, The Times.
  • Feb.11.2018: Private water payouts are a public scandal, says Labour. John McDonnell promises renationalisation of water, energy and rail under Labour. Labour launched a full-frontal attack on the privatised water industry last night, accusing companies of paying out the “scandalous” sum of £13.5bn in dividends to shareholders since 2010, while claiming huge tax breaks and forcing up prices for millions of customers. The Conservative Party and the Confederation of British Industry both condemned McDonnell’s comments. Michael Roberts, the chief executive of Water UK, which represents private water companies. Toby Helm, The Guardian.
  • Feb.05.2018: Nationalising water industry could cost £90bn. Labour’s plans to renationalise the water industry would cost £90 billion, according to the Social Market Foundation. The study, which was commissioned by the water industry, also considered nationalisation where a government forced through a sale for lower prices. That would reduce up-front costs but would cost more in the long term as investors in other sectors would either desert Britain or demand better returns because of the risk of nationalisation. Four companies — United Utilities, Anglian Water, Severn Trent and South West Water — commissioned the study but the SMF said it made its calculations independently using publicly available data and retained full editorial control. A spokesman for Mr McDonnell said: “This is a report by a right-wing think tank, led by the former political editor of the Telegraph, and commissioned on behalf of the water industry. Sam Coates, The Times.

2017

  • May.23.2017: Renationalisation is needed to tackle water poverty. This PSIRU Brief shows that water privatisation in England and Wales has led to a concerning increase in water poverty, and that economic regulator OfWat is part of the problem. It argues that renationalisation is needed to tackle water poverty. Emanuele Lobina, PSIRU.
  • May.17.2017: Nationalising The UK Water Industry Would Cost At Least £67B. Yesterday, The UK Labour Party unveiled their 2017 election manifesto that among other things would nationalise the UK water industry. But how much would that really cost? At the end of the day it’s all a question of priorities and where you feel money is best spent. Water Rates.
  • May.16.2017: Labour will re-nationalise UK's water industry, says Shadow Chancellor John McDonnell but the cost hasn't been worked out. The Labour Party claims the water industry has been used for tax avoidance and says its time to bring it back into public ownership. The pledge comes after a leaked version of Labour's manifesto last week promised to bring the National Grid, Railways, Royal Mail and energy companies back into public ownership. Thames Water, the country's biggest water firm, is valued at £12billion and the company that owns Severn Trent and United Utilities is said to be worth £17billion. "It's been used, I have to say, for tax avoidance, in some instances. In one year £18bn has been given out as dividends to shareholders. All of that could have been used for investment and bringing bills down. We believe this is an industry that should be brought back into public ownership. Joshua Taylor, The Mirror.
  • Jan.14.2017: Water, water everywhere: utility firms get green light to sell beyond local regions. Deregulation of the big water companies will allow them to sell to business clients all over the country. But will it really be good news for consumers? The initiative has already had a huge impact on the industry. Last summer the UK’s largest supplier, Thames Water, announced it had agreed to sell its book of business customers to British Virgin Islands registered supplier Castle Water Ltd. Several other domestic water firms have now set up new separate trading divisions, or joint ventures, that will be selling their services to business-only customers. So far 14 water companies have applied to become licensed retailers, and further applications are pending, according to OfWat. The industry has a spent the last year preparing for the changes, and private company Market Operator Services Ltd (MOSL) has been set up to create the IT infrastructure to enable switching to happen. But householders who expect such a move to substantially lower their water bills could be disappointed. Unlike in the energy sector, the regulator still sets out what the private water companies can charge customers, according to a highly complicated set of formulae. Water UK, which represents the water companies, has said extending retail competition to more than 20m households could secure potential benefits, but warned it would also be “a major undertaking and so deserves to be given very careful consideration”. In recent years the provision of water has become increasingly politicised. The average water bill in the UK is £396 a year; however that masks big regional differences. Customers in the south-west pay more than £540 a year, while those in the Severn Trent area pay £333. Many of the UK’s water companies are now owned by private equity or foreign investment funds, which bought the businesses because they provide steady profits. Miles Brignall, The Guardian.

2016

  • Jan.13.2016: UK households overpaying for water supply due to regulator miscalculation. OfWat consistently overestimated suppliers’ financing and tax costs when setting price limits, say MPs. As a result, the Public Accounts Committee said water firms have gained at least £1.2bn over five years to 2015 from bills being higher than necessary, while domestic bills have climbed to £396 a year. Meg Hillier, the committee’s chair, said the idea that the very body responsible for protecting the rights of customers making such basic mistakes will outrage the public. The National Audit Office examined the profits of water companies last year and found that they had benefited from lower than expected tax and borrowing costs after a cap on tariffs had been fixed by Ofwat. As a result, companies made windfall gains of at least £1.2bn between 2010 and 2015 from bills being higher than necessary, the report said. The water industry in England and Wales was privatised in 1989 and currently includes 18 large independent, privately owned companies who are monopoly suppliers to 22m households. Rajeev Syal, The Guardian.

2015

2014

  • Dec.19.2014: Water in the UK - public versus private. Like the East Coast mainline, the differing setups within the UK offer a useful insight into claims by Britain's governing parties that privatised water is in any way superior to publicly owned. But it does offer some enormous profits. ToDo: go through this, some very good info in here. Rachel Graham, openDemocracy.
  • Nov.2014: Troubled Waters: Misleading industry PR and the case for public water. This report discusses the role played by misleading public relations in the attempts of water multinationals Veolia and Suez to expand their market share in the USA. The report finds that, in the US like in other countries of the global North, Veolia Environnement SA and Suez SA are very good at promising improved performance and enhanced service quality but have a poor track record at keeping their promises. As this poor track record is a systemic feature of private water operations, the report makes the case for remunicipalisation and for strengthening public water services through in-house restructuring, public-public partnerships, and policies that support democratic governance. Emanuele Lobina, PSIRU.
  • Sept.13.2013: Water companies’ tax dodging is beyond the pail. Since 2010, the average household water bill has increased by 14.5%. Over the past 3 years, a number of utility companies have used tax avoidance schemes – based on debt tax relief – which has substantially reduced their tax liabilities. Companies like Yorkshire Water and Thames Water. My study demonstrated that this tax avoidance has potentially cost the Exchequer almost £1bn in the past 3 years. In my view industrial scale tax avoidance of this nature is unethical, unacceptable and irresponsible. They don’t use their tax avoidance proceeds to increase investment as they like to claim. The companies concerned get tax relief twice for the same investment: first, they get tax relief on the investment from capital allowances; secondly, as they make around 80% of the investment through debt, they get tax relief on the interest payments. Charlie Elphicke, The Spectator.

2013

  • Feb.15.2013: Leaking Away: The Financial Costs of Water Privatisation. As water bills rise again, an investigation by Corporate Watch into the finances of the 19 water and sewerage companies in England and Wales has found: Almost one third of the money spent on water bills goes to banks and investors as interest and dividends; People are paying £2 billion more a year – or around £80 per household – than they would be if the water and sewerage supply was publicly financed; Six companies are avoiding millions in tax by routing profits through tax havens, using a regulatory loophole the government has chosen to keep open; The CEOs of the 19 water companies were paid almost £10m in salaries and other bonuses in 2012. more Corporate Watch.

Earlier

  • Jan.01.2011: East to West: the Future of Water? There is now a continued shift in focus from West to East in the global water market. The 'Big Five' companies – Veolia, Suez, Agbar, RWE and Saur – now hold 32% of the market compared to 71% in 2001. In Europe, the emphasis is on organic growth and gaining contracts in Central and Eastern Europe, where EU subsidies can be mobilised. Review of Pinsent Masons' 12th Water Yearbook. WaterWorld. Original archived on Jun.11.2020.
  • Sept.2010: Water companies in Europe 2010. The ownership of private water companies in Europe in 2010 has become even more concentrated than before... increasingly dependent on state capital. Biwater, Suez, Veolia, ... David Hall, Emanuele Lobina, Public Services International Research Unit (PSIRU).
  • Apr.2008: Water privatisation. The article examines the expansion of private water companies since 1989 the withdrawal from developing countries from 2003 onwards, and the economic impact of privatisation. DownloadArchive-org-sm.svg, Mafiadoc.com. David Hall, Emanuele Lobina, Public Services International Research Unit (PSIRU).

Fat Cats

  • Jun.10.2018: Labour denies toning down water industry nationalisation plans. Labour has insisted it is not toning down its nationalisation plans despite claims from a water company chief that a mutualisation-style approach has been discussed with opposition leaders. Labour has made forceful public statements on renationalising water – along with energy and rail – in recent months but a FTSE 250-listed utility claims the party is looking at alternative means of gaining control over the industry. Susan Davy, the chief financial officer of Pennon Group plc, which owns South West Water, said that although Labour was publicly talking about full nationalisation, she had noted a more emollient position during discussions with the party. Shadow chancellor, John McDonnell, has pledged total, “permanent” and cost-free renationalisation of the water, energy and rail industries if Labour wins power at the next election. In Feb.2018 he attacked the privatised water industry, accusing companies of paying out a “scandalous” sum of £13.5bn in dividends to shareholders since 2010, while claiming huge tax breaks and forcing up water bills by 40% in real terms since privatisation of the industry in 1989. The heads of England’s privatised water companies were criticised by the GMB trade union this month for banking £58m in pay and benefits over the past 5 years while customers have received above-inflation rises in their water bills. Davy, who received a pay package of £922,000 last year, said the water industry was seeking to impress on Labour the fact that the large majority of shareholders in water companies are owned by the public. “When you look at our model, and that of United Utilities and Severn Trent as well, 70% of our shareholders are pension funds, charities, employees – all in the UK,” she said. Lawrie Holmes, The Guardian.
  • Jun.05.2018: Water bosses' £58m pay over last five years a 'national scandal'. The GMB union said the chief executives of England’s nine water and sewage companies were “fat cats” earning “staggering sums” from the management of a natural resource. Tim Roache, GMB’s general secretary, said the pay awarded to water bosses was a national scandal and launched a campaign to return the industry to public ownership. Household water bills have risen by 40% above inflation since the industry was privatised in 1989, according to a National Audit Office report. The average bill this year will be £405, a 2% increase on last year, according to Water UK, the trade body that represents water and sewerage companies. Michael Gove has also attacked water companies for paying their bosses large salaries and huge dividends to shareholders while contributing little or no tax. He said Anglian Water and Southern Water paid no corporation tax last year, while Thames Water “has paid no corporation tax for a decade”. Ofwat, the industry regulator, said that it had repeatedly told water companies that they must do more to make sure executive pay better reflects customer service. Liv Garfield, the chief executive of Severn Trent, was paid £2.45m last year, making her the UK’s best-paid water company boss. Garfield took home a salary of £674,000, a £615,000 bonus, and long-term incentive shares worth £975,000, a pension contribution of £168,000 and other benefits worth £18,000. The company said "Word Salad". Rupert Neate, The Guardian.

Water Infrastructure

Need an overview of what's in place, what the problems are, etc.

  • Nov.14.2016: London super-sewer is waste of £4bn, says assessor. Seven-year project to stop wastewater flowing into Thames is unnecessary and ministers should have considered alternatives, says Chris Binney. Chris Binney, chairman of the 2005 steering group that recommended the Thames Tideway tunnel as the solution to London’s wastewater problems, has questioned whether it was worth the £4.2bn estimated cost. Bazalgette Tunnel Ltd, a private company, set up by the govt and Thames Water, will own, manage and finance the sewer during construction. One-third of the cost is being contributed by Thames Water, while the remaining £2.8bn will be raised from private investors. To encourage investors, they will receive an income from the project from the very start, while the government will indemnify them against a number of risks. When the tunnel is finished, the company will supply sewerage services to Thames Water on a 125-year concession, with the cost borne directly by customers through a fee added to bills. Damien Gayle, Matthew Taylor, The Guardian. See also Thames Tideway SchemeWikipedia-W.svg, WP search Bazalgette Tunnel Limited, ... Note to me: Thames Water awarded the contract to Bazlgette - check out if there are conflicts of interest.

The Water Industry

Where no profit can be expected, no investments are made by private water suppliers. Private companies show little willingness to invest in maintenance; profit-oriented companies calculate that it is cheaper to lose 30% of piped water by leakage than to repair the mains. Leaking drainage mains can be a pollution threat to groundwater. Neglecting the infrastructure results in higher water demand and the potential breakdown of water supply during dry periods. Corruption cannot be eliminated through privatisation; there have been several cases of bribery to obtain price increases of water tariffs. Water companies providing data that are difficult to verify often make the work of regulatory agencies difficult. The regulatory authority has effectively been ignored. Where transparency is lacking, private operators cannot be made accountable. Governments can be blackmailed, especially before elections; companies can threaten declaration of bankruptcy (with the result of a breakdown of the water supply) or increase water prices resulting in voter frustration and thus fewer votes for ruling parties.[1]

Restructuring of the Industry

What has happened since privatisation in 1989.

Water and Sewerage Companies

  • Dec.1989: Privatisation of the 10 WSCs. The WSCs were protected from takeover for 5 years by the govt's "Golden Share". This expired in 1994.
  • 1989: The Water Act 1989 turned the 10 RWAs into "Water and Sewerage Companies" (WSCs), with 25-year monopolies. The companies formed were:

Anglian Water Services Ltd

See main article: Anglian Water Group Ltd Anglian-Water.svg

Northumbrian Water Ltd

  • Northumbrian Water GroupWikipedia-W.svg
  • 1988: NWA's operations were transferred to a holding company Northumbrian Water Group (NWG); the water and sewerage activities were vested in a subsidiary company Northumbrian Water Ltd (NWL), while three much smaller subsidiaries were set up to handle other activities, such as solid and liquid waste treatment and environmental consultancy.
  • 1989: NWG was privatised
  • 1996: Lyonnaise took over Northumbrian Water
  • 2003: Aquavit plc purchased Northumbrian Water Ltd and re-listed the company on the London Stock Exchange. (?? is this right? doesn't match up w/the w'pedia page)

North West Water

1989: North West Water Ltd was privatised → United Utilities Group plc

Severn Trent plc

Severn Trent is a UK-based water company. Under the umbrella of "Severn Trent" is a group of companies operating across the UK, USA, mainland Europe, with some involvement in the Middle East.
The main companies in the group are Severn Trent Water and Severn Trent Services. Severn Trent Laboratories was rebranded as part of Severn Trent Services in 2010, to streamline the company and to give a single worldwide image.

  • Nov.23.2018: Regulator aims to strike a chill into water firms. OfWat has put 4 of the largest suppliers on notice over their plans to prevent customers from being cut off for days on end over the winter. Thames Water, Severn Trent, Southern Water and South East Water. They are under scrutiny after 200,000 customers were cut off during the “beast from the east” storms in March. Severn Trent reported higher profits after an above-inflation increase in water bills of 4.6% this year to £348. The company, which has been on the radar of politicians for making Liv Garfield, its £2m-a-year chief executive, one of the best-paid bosses in the industry, reported profits before interest, charges and tax up 4.3% at £299m on revenues 3.6% higher at £881m between Apr-Sept. The profits from the increased bills are being passed on to shareholders with a ~8% lift in the interim dividend to 37.35p. Robert Lea, The Times.
  • Feb.08.2017: Workers revolt against Severn Trent's takeover of Dee Valley Water is scuppered at the High Court. The High Court yesterday ruled their votes should not count, saying many were acting out of fears for their jobs rather than in the interests of all shareholders. Judge Sir Geoffrey Vos said an 'intelligent and honest' shareholder would reasonably approve Severn Trent's offer, and it should be allowed to go ahead. But workers could launch an appeal at a hearing tomorrow. Rachel Millard, This is Money.
  • Jan.12.2017: People power blocks Dee Valley Water's takeover by FTSE 100 firm as locals fear job losses. Activist shareholders have foiled the bid by Severn Trent to take over their local water company. It was voted down by hundreds of new shareholders made up of angry employees and locals. Many had only recently been granted shares after a mystery investor handed them out in a bid to block the takeover. The High Court will now decide whether these votes should be allowed or the takeover should go through based on the wishes of longer-standing shareholders. The unprecedented twist is the latest step in a long-running bidding war for Dee Valley. Ancala Partners opened bidding in Oct.2016 before being outbid twice by Severn Trent whose offer was approved by Dee Valley’s board at the end of Nov. In late Dec., Dee Valley employee Huw Cashmore snapped up 461 shares before transferring 445 to individuals, the Mail understands. Dee Valley’s largest shareholders are investment giant Axa SA with a 25.5% stake, and insurance giant Aviva, with 9.6%. This is Money.
  • Nov.30.2016: Severn Trent Water steps up its Dee Valley takeover bid to £84m. Earlier this month, Severn Trent had agreed to acquire Dee Valley Water, beating investment firm Ancala Fornia’s bid. Yesterday, Severn Trent increased their bid even more. The revised deal followed a series of events related to strong opposition from Wrexham representatives who feared the Severn Trent takeover would negatively affect the quality of service served to the region and the situation of today’s Dee Valley employees. Severn Trent Water currently supplies water and treats sewage. Both Severn Trent Water and Severn Trent Services entities constitute Severn Trent plc, which is involved across the UK, USA, mainland Europe, with some involvement in the Middle East. Anglo TEC. See also Severn Trent hits stumbling block with Dee Valley bid.
ToDo:
  • Severn Trent plc, CH
    • Severn Trent Investment Holdings Ltd, holdco, CH
      • Severn Trent Finance Holdings Ltd, holdco, CH
        • Severn Trent Holdings Ltd, holdco, CH
          • Severn Trent (W&S) Ltd, finance company to non-regulated group companies, CH
            • Severn Trent Services Defence Holdings Ltd, holdco, CH
              • Severn Trent Services Defence Ltd, MoD Project Aquatrine Package C provider, CH
            • Severn Trent Services International (Overseas Holdings) Ltd, holdco, CH
              • 50%: Water Plus Group Ltd, CH
              • Severn Trent Services Operations UK Ltd, MoD Project Aquatrine Package C subcontractor, CH
              • Derwent Insurance Ltd, provision of insurance services, reg. Gibraltar Flag-Gibraltar.svg
              • Lyra Insurance Guernsey Ltd, provision of insurance services, reg. Guernsey Flag-Guernsey.svg
              • Severn Trent Holdings SA, legacy holdco, reg. Belgium
              • 60%: Severn Trent Response Ltd, water infrastructure operations, reg. Ireland

  • Feb.1993: East Worcester Water plc was sold to Severn Trent Water Ltd, to form an enlarged Severn Trent Water. The acquisition received regulatory approval.ref,AR-Dec.1992
  • Nov.1992: East Worcester Water plc was incorporated. OpenCorporates-sm.svg
  • 1990: Restructuring: Staff reductions and reorganisation.AR-Dec.1990
  • Apr.1988: Lyonnaise des Eaux SA sold its interest in East Worcestershire Waterworks Company to ??ref
  • Mar.1988: East Worcestershire Waterworks Company, a statutory water company supplying the South Birmingham area, was acquired by Biwater Supply Ltd, a subsidiary (75%) of Biwater Ltd.AR-Dec.1987 (See Bournemouth Water for Biwater logo)
  • History of East Worcestershire Water Company

Southern Water Services Ltd

ToDo: Put this on its own page. Website, Southern Water + Portsmouth Water, CH, Ownership, link, DDG search, Wikipedia, CR 112331


Pollution-Water.svg
  • Dec.02.2018: Southern Water forced to fix £250m hole in pensions. Pensions Regulator threatens Southern Water over dividend bonanza. ...has been forced to double payments to its deficit-laden pension fund and share future dividends with the scheme. ...growing public anger over the sums extracted from water companies by infrastructure investors. The owners, a consortium of infrastructure investors including UBS Asset Management and JP Morgan Asset Management, took out £190m of dividends in 2016 and last year — part of a wider plan to extract £210m between 2015-2020, while, in effect, halving annual contributions to the pension scheme to £10m between 2016-2019. John Collingridge, The Times.
Pollution-Water.svg
  • Dec.19.2016: Southern Water fined record £2m for sewage leak on Kent beaches. Thanet council forced to close beaches for nine days due to ‘catastrophic’ leakage and public health concerns. Southern Water has been fined a record £2m for flooding beaches in Kent with raw sewage. The Environment Agency called the event “catastrophic”. The judge said that Southern Water’s repeat offending was “wholly unacceptable”. The company apologised unreservedly, as it did when fined £200,000 in 2013 for similar offences. In 2015-16, Southern Water made an operating profit of £284m, representing 35% of its turnover. In Sept.2016, Southern Water was named as the most complained-against water company in the country, for the fourth year a row. The company is owned by a consortium of private equity and infrastructure investors and pension funds. Damian Carrington, The Guardian.
  • Sept.21.2016: Southern Water has wave of complaints. Inaccurate bills, problems with meters that were meant to prevent dodgy charging and aggressive programmes to hit non-payers are behind more than 100,000 complaints against the nation’s water suppliers last year. other water providers had a poor year, too. Complaints to Dwr Cymru, the not-for-profit people’s supplier Welsh Water, more than doubled; complaints at Bournemouth Water, part of the South West Water group Pennon, grew by 90%; and at Affinity Water, serving parts of the home counties north of the Thames and owned by a group of investment funds led by Morgan Stanley, they were up 82%. The data collated by the Consumer Council for Water will lead to the worst four performers being hauled in to explain themselves. Southern Water is owned by some of the richest funds in the world, including interests of the Hong Kong multibillionaire Li Ka Shing, Australian and Canadian pension funds and banks’ investment divisions. Robert Lea, The Times.
Pollution-Water.svg
  • Nov.12.2014: Southern Water fined £500,000 after untreated sewage was pumped into Swalecliffe Brook, killing hundreds of fish. Southern Water Services have been hit with a staggering £500,000 fine after untreated sewage was discharged at Swalecliffe Brook last year. A 1.2 kilometre stretch of water was so polluted that eels were spotted trying to jump out of the brown water. Two of the company's pumps had stopped working triggering two alarms which weren't acted upon. The Environment Agency, said: “Southern Water has acknowledged that they had sufficient warning and knowledge of the incident to minimise the impact on the local environment, but failed to act swiftly and notify partners to help this happen. Paul Hooper, Kent Online.
Pollution-Water.svg
  • Aug.23.2013: Southern Water fined £200,000 for sewage discharges. Company pleaded guilty in court to breaching permit and causing avoidable releases of untreated sewage into sea. Defective pumps at Margate pumping station in Kent led to several discharges of untreated sewage between January and June 2011. The repeated failure of the pumps meant Southern Water was unable to pump the sewage to Weatherlees Works for treatment, and instead discharged it into the sea off Margate. The firm, which serves Kent, Sussex, Hampshire and the Isle of Wight, failed to tell the Environment Agency or the local food authority about the discharges. The Guardian.

South West Water Ltd

Thames Water Utilities Ltd

  • Kemble Water Holdings Ltd, parent of Thames Water, CH
  • Macquarie Group exited from the consortium in Mar.2017. See Mar.2018 a/cs, p.71
  • 2001: RWE AG, a German utility company, took over Thames Water plc.ref
  • 1989: The 'Thames Water Authority was partly privatised, with the water and sewage responsibilities transferred to the newly-established publicly quoted company of Thames Water, and the regulatory responsibilities transferred to the newly-created National Rivers Authority.
  • ToDo: check if China Investment Corporation still has a stake in Kemble Water Holdings Ltd, Thames Water's parent company. CH. ref, acq'd Jan.2012.
  • Dec.21.2018: Judge fines Thames Water £2m over river pollution. Utilities firm breached environmental regulations over raw sewage flowing into a brook in the Cotswolds. The £2bn-turnover utilities firm admitted breaching environmental regulations in relation to untreated sewage flowing into a brook near Milton-under-Wychwood, in the Cotswolds, in Aug.2015. The court heard Thames Water ignored more than 1,000 alarms from the Bruern Road sewage pumping station in west Oxfordshire in the 6 weeks leading up to the incident. The judge said if Thames Water donated £200,000 to 3 local environmental charities he would reduce the total fine by that amount. Press Association, The Guardian.
  • Sept.02.2018: Thames Water to cap payouts. Thames Water is to restrict its own dividends for the next 7 years after bowing to a wave of public outrage and pressure from OfWat. The curb comes after a barrage of criticism. The company was slapped with a record £20.3m fine last year for pumping 1.4bn litres of untreated sewage into the River Thames. Sources said that Thames’s new owners had decided to cap their own dividend payouts over the next regulatory period. They have already pledged not to take dividends this year or next. Instead, funds will be recycled into upgrading the utility’s network of Victorian pipes. OfWat, chaired by former Anglian Water boss Jonson Cox, has warned that heavily indebted companies will be restricted from paying big dividends. He has singled out Thames as a prime target. Under its previous owner, Macquarie, the Australian bank nicknamed the vampire kangaroo, Thames was bled for dividends while huge debts were amassed. Thames paid a total £672m in dividends between 2010 and 2015. With debts of £11.3bn, its gearing ratio is the highest in the industry at 81.1% — well above OfWat’s preferred level of 60% debt to 40% shareholder equity. Industry sources said Thames, which is run by former BT executive Steve Robertson, will aim to cut its gearing ratio to about 76% for the next regulatory period. Macquarie sold its 26% stake in Thames to Canadian pensions giant Omers and the Kuwait Investment Authority in Mar.2017 for an estimated £1.4bn. The company is now mainly owned by pension schemes and sovereign wealth funds. Jonson Cox sent shockwaves through the industry earlier this year by proposing to share the benefits of higher gearing with customers — splitting any gains above its preferred 60% gearing ratio evenly between customers and shareholders. John Collingridge, The Times.
  • Jul.25.2018: Our privatised water system has failed – it’s time to look for alternatives. Thames Water, the private company responsible for London’s sewers, claims it was too burdened by debt to pay for the sewer project. Instead, the new pipeline will be financed through price increases on water bills charged to London residents, which are set to rise £20 to £25 per year by the mid 2020s. According to the Consumer Council for Water, among household outgoings citizens are most likely to be in arrears with their water bills. Meanwhile, Thames Water will continue to pay £millions in bonuses and dividends to its directors and shareholders (its CEO Steve Robinson is set to receive a £3.75m bonus in 2020). Together with the UK govt, Thames Water has created a separate company, Bazalgette Tunnel Ltd, which borrowed £1.2bn from a package of investors and £700m from the European Investment Bank. The govt has promised to step in and shoulder the risk lest the project encounter financial difficulties – which looks likely, given the complications inherent to drilling a subterranean pipeline. Thames Water has a dodgy history of siphoning profits while dumping toxic sewage. Every year, 39m tons of raw sewage makes its way into London’s river. After UK water regulator OfWat hit the company with a record £20m fine in 2017, Thames Water promised to change direction. It elected a new CEO, and said it would stop dumping untreated waste. But such retroactive regulations are a sticking plaster. more Hettie O\'Brien, openDemocracy.

  • Nov.30.2017: Thames Water: regulator says data from utility cannot be taken at face value. OfWat criticises 4 water companies for ‘shortcomings in data handling’, saying it cannot be sure the firm’s information is accurate. The group is bringing in Ian Marchant, the former chief executive of the big six energy company SSE, as chairman to clean up its corporate governance failings. He will replace the long-serving Sir Peter Mason in January. The company also announced that it would close its Cayman Islands subsidiaries. Thames Water, which has not paid corporation tax in the UK for the past 10 years, said there was no tax advantage from the two Cayman subsidiaries, but management is understood to accept “it just looks wrong”. Julia Kollewe, The Guardian.

  • Nov.24.2017: Thames Water helps explain why nationalisation is suddenly popular. The company’s current corporate structure is baffling to ordinary mortals. Two Cayman Islands entities sit below the regulated utility and a chain of 5 companies stands between the main company and its shareholders. Complexity is one reason why it was impossible for outsiders to calculate the returns made by Macquarie during its decade as Thames’ dominant shareholder. Nobody, however, disputes that the Australian financial house made a packet. Meanwhile, Thames was fined £8.5m in June for leaking water at a rate that OfWat called “unacceptable”. That followed a £20.3m fine in March for pumping huge quantities of raw sewage into rivers in 2012 and 2013; the judge called the company’s actions “borderline deliberate”. The penny – finally – has dropped. Ian Marchant, former boss of energy group SSE, was unveiled as the new chairman of Thames on Thursday. He seems to have accepted the job on the condition that the corporate structure is reformed. The Cayman subsidiaries will be closed and the new set-up made “as simple and transparent as possible”. Time to relax and take comfort in Ofwat’s powers to hold water companies to account? Hardly. Nils Pratley, The Guardian.
Pollution-Water.svg
  • Mar.22.2017: Thames Water hit with record £20m fine for huge sewage leaks. Thames Water has been hit with a record fine of £20.3m after huge leaks of untreated sewage into the Thames and its tributaries and on to land. The prolonged leaks led to serious impacts on residents, farmers, and wildlife, killing birds and fish. The Environment Agency, which brought the prosecution, said the enormous volume of untreated sewage discharged was unprecedented – 1.4bn litres – as was the length of time over which the discharges occurred. The sewage caused long-term pollution in the Thames and some tributaries, revolting riverside users and wiping out the season for a commercial cray fisherman. The EA said it was the biggest freshwater pollution case it had ever undertaken. Thames Water was fined £1m in 2016 for repeated discharges of sewage into the Grand Union canal in Hertfordshire and £380,000 later the same year, after a sewage leak in an area of outstanding natural beauty in the Chilterns. ... In 2013, the Observer revealed that the nation’s 10 biggest water companies were the most persistent polluters of England’s rivers and beaches. more Damian Carrington, The Guardian.
Pollution-Water.svg
  • Jun.10.2013: Thames Water pays no corporation tax on £1.8bn turnover. The UK's largest water company is accused of "ripping off the taxpayer" after revealing it paid no corporation tax and pocketed a £5m credit from the Treasury in a year when it made £550m in profits. In a year when the utility admitted that its customer service was "still far from desirable", chief executive Martin Baggs was awarded a pay rise of 5.9%, taking his basic salary to £450,000. According to a Unison report written by the New Policy Institute, water bills have risen by 50% in real terms since the industry was privatised in 1989. Thames Water is owned by a consortium of investors led by the European arm of the Australian bank Macquarie Group. Since the group bought the company in 2006, Thames Water has paid out £1.4bn in dividends. Last year an investigation by the Observer revealed how Thames Water lowers its tax bill by offsetting interest payments on its debts against its tax liability. "They have been increasing the debt in the company, reducing the amount of profit liable to tax, but still paying themselves nice high dividends," said Martin Blaiklock, a former director of utilities at the European Bank for Reconstruction and Development. He warned that Thames Water and other water companies risked "financial collapse" if they came under sudden pressure to repay their debts. Tony Smith, chief executive of the Consumer Council for Water, said: "All water companies, like everyone else, should be fulfilling their obligations when it come to paying tax." Jennifer Rankin, The Guardian.

Welsh Water (Dŵr Cymru Cyfyngedig)

Welsh Water outsources all of its operating functions to external 3rd party contractors. The company retains only a small number of staff to co-ordinate the work of the contractors, and to ensure that it meets its statutory duties. (p.100)[3] It also changed its ownership structure. Welsh Water's owner is a single-purpose company, formed to own, finance and manage Welsh Water. As it is a company limited by guarantee, it has no shareholders and is run solely for the benefit of customers. ?? A "small no. of employees" does not sync with the 2018 accounts, which states they have 3,435 employees.

  • 2017: Began a new electricity supply arrangement with Orsted for 100% renewable energy.Mar.2018 a/cs,p.9
  • Jan.2001: Hyder Consulting plc: when Hyder plc was bought by Western Power Distribution, Hyder Consulting's senior management took the opportunity to acquire the business in a management buy-out. In Oct.2002, Hyder Consulting plc was listed on the London Stock Exchange. The Group is an engineering design, advisory and specialist management consultancy operating in the UK, Europe, the Middle East, Asia and Australia. In Oct.2014, Hyder Consulting plcOpenCorporates-sm.svg was acquired by Dutch group Arcadis NV/Arcadis UK Investments BV, and renamed as Arcadis Consulting Group LtdOpenCorporates-sm.svg. Hyder ConsultingWikipedia-W.svg, ArcadisWikipedia-W.svg, HyderConsulting.comArchive-org-sm.svg, www.Hyder-Consulting.comArchive-org-sm.svg
  • May.2001: Glas Cymru purchased Welsh Water from Western Power Distribution via its subsidiary Glas Cymru (Securities) Cynfyngedig. Welsh Water subsequently contracted out management of its water and sewerage operations to United Utilities, and management of its customer service operations to Thames Water, raising the proportion of its operating costs subject to contracting out from ~60% to 80%.
  • 2001(?): PPL Corporation purchased Southern Company's interest in Western Power Distribution Ltd.
  • Dec.2000: Hyder Industrial Ltd, and Hyder Energy Services Ltd, were sold to United Utilities plc by Hyder Industrial Group Ltd.ref, p.14Archive-org-sm.svg
  • Sept.2000: Western Power Distribution Ltd, a subsidiary of American utility company PPL Corporation, together with USA energy company Southern Company, took over Hyder plc. Infralec was re-branded as part of Western Power Distribution. Subsequently, a programme of disposals of Hyder plc's subsidiaries commenced, which was completed by Mar.2001.
  • Feb.2000: SWALEC's retail electricity and gas business, including the retail brand, was sold to British Energy. Hyder retained SWALEC's electricity distribution business (ie. running the electricity network), which was renamed as "Infralec".
  • Feb.1999: BPS (Public Sector) Ltd was acquired, which provided payroll processing for NHS Trusts.[4]:Mar.1999
  • Sept.1998: Laing Hyder plc: a joint venture was formed with construction group John Laing plc to target investment opportunities under the govt's Public Private Partnerships scheme, in the education, health, courts, emergency services and govt buildings sectors.[4]:Mar.1999
  • Sept.1998: The Oxford Consortium, the former computer centre of the Anglian and Oxford Regional Health Authority, was acquired. The Consortium provided a wide range of IT systems, encompassing patient administration, financial management and IT consulting services to NHS Trusts.[4]:Mar.1999
  • Oct.1997: Hyder Infrastructure was formed to provide outsourced operational and installation services to military complexes, utilities, local authorities, and commercial and industrial businesses.
  • 1997: SWALEC Gas was formed to take advantage of the deregulation of the UK gas market, which took place in stages between 1997-1998.
  • Mar.1996: Hyder plc: Welsh Water plc renamed itself.[4]:Mar.1996 Consequently, various subsidiaries were renamed: Acer Consultants became Hyder Consultants, etc. Hyder.co.ukArchive-org-sm.svg
  • Jan.1996: SWALEC (South Wales Electricity plc, formerly the South Wales Electricity Board), was taken over by Welsh Water plc, bringing electricity supply and distribution into the group.[4]:Mar.1996 The takeover was financed by debt.
  • Dec.1995: South Wales Electricity plc, along with the other regional electricity companies, sold its 5.4% interest in National Grid Holdings plc/National Grid Group plc by way of of a dividend in species to its shareholders.[4]:Mar.1997
  • 1993: Acer Consultants Ltd was acquired by Welsh Water; it was subsequently renamed as "Hyder Consulting" in 1996. Acer Consultants was formed in Mar.1987 from the merger of Freeman Fox & Partners, and John Taylor & Sons. The two companies were collectively responsible for the design of projects such as the Victoria Falls Bridge, Sydney Harbour Bridge, the Humber Bridge, the Severn Bridge, the Shanghai water supply project and major water and sewerage projects in Leningrad and Tehran. Acer Consultants continued the acquisition of several other specialist firms, forming a worldwide infrastructure consultancy.[5][6]
  • Apr.1989: Welsh Water plc: Welsh Water was privatised.CH.
  • 1984: Dŵr Cymru Authority (Welsh Water Authority) sold the Elan Aqueduct and associated works to Severn Trent Water Authority. The proceeds were invested in a trust fund, the "Elan Valley Trust Fund", (location?), the function of which was to provide an income to Dŵr Cymru Authority whilst preserving the capital value of the fund in real terms. Dŵr Cymru Authority's interest in the fund was vested in Dŵr Cymru Cyfyngedig, under the provisions of the Water Act 1989.[4]:Mar.1996
ToDo: See Annual Report 2001/2Archive-org-sm.svg, p.13 re Partnerships with specialist service providers; p.2 re formation, etc.

Structure

  • Glas Cymru Holdings Cyfyngedig, CH ToDo.
    • Glas Cymru Anghyfyngedig, CH
      • Glas Cymru (Securities) Cyfyngedig, holdco, CH
        • Dŵr Cymru (Holdings) Ltd, holdco, CH
          • Dŵr Cymru Cyfyngedig, regulated water and sewerage services, CH
          • Dŵr Cymru (Financing) Ltd, investment company, [OC], reg. Cayman Islands Flag-Cayman-Islands.svg

Related companies:

  • Cambrian Utilities Ltd, [CH]
  • Welsh Water Infrastructure Ltd, commercial division, [CH]. Acq'd Kelda, a food and green waste recycling business in Dec.2017.
  • Welsh Water Holdings Ltd, [CH]

Wessex Water Services Ltd

Wessex WaterWikipedia-W.svg, YTL PowerWikipedia-W.svg, YTL CorporationWikipedia-W.svg, Website, About (good map), owned by http://www.ytl.com/, YTL Reports

  • 2002: YTL Power International Berhad, owned by HTL Corporation Berhard (itself owned by Yeoh Tiong Lay & Sons Holdings Sdn Bhd), acquired Wessex Water from Enron.
  • 1999: Enron Water Europe plc took over Wessex Water.
  • Wessex Searches (trading name of Wessex Water Enterprises Ltd) is a subsidiary of Wessex Water Ltd.ref

  • Yeoh Tiong Lay & Sons Holdings Sdn Bhd, [OC], reg. Malaysia
    • YTL Corporation Berhad, [OC], reg. Malaysia
      • YTL Power International Berhad, [OC], reg. Malaysia
        • Wessex Water Operations Centre, [CH]
          • JV: Water 2 Business Ltd: 70%, JV w/ Bristol Water plc: 30%, CH

Yorkshire Water Services Ltd

Owned by Kelda Group Ltd, CH, was originally known as Yorkshire Water plc. Yorkshire Water has outsourced most of its capital investment delivery work to external contractors. It presently outsources its customer service functions to an associate company, Loop. Since privatisation, Yorkshire Water had also created a separate analytical services (laboratory) company, Alcontrol and a civil engineering contractor, BWEL Ltd. Both companies have now been sold by the group. Yorkshire Water acquired Aquarion, based in Connecticut, USA in January 2000.(page 100),[3]

  • The current trading companies within Kelda Group (page 102.[3])

Water-only Companies

The 29 privately-owned Statutory Water Companies (SWCs) (see p.x for a list) also became formal companies, but were not protected from takeover, and were not given 25-year monopolies. Consolidation has reduced the number of water only companies from a total of 29 at privatisation to 13 (annex D).

  • The smaller water-supply only companies were the subject of takeovers straight away, and nearly all are now owned by multinationals, mainly the three French groups Vivendi SA, SAUR, and Suez-Lyonnaise.

As of Jun.2005, only these remain: Bournemouth and West Hampshire Water plc, Bristol Water plc; Cambridge Water Company; Cholderton and District Water Company Limited, Dee Valley Water plc, Folkestone and Dover Water Services Ltd, Mid Kent Water plc, Portsmouth Water plc, South East Water plc, South Staffordshire Water Plc, Sutton and East Surrey Water plc, Tendring Hundred Water Services Ltd Three Valleys Water plc.

Bournemouth & West Hampshire Water plc

ToDo:

Bristol Water plc

Bristol Water is one of the 8 regulated water-only companies in England and Wales. All domestic water supply customers receive sewerage services from Wessex Water Services Ltd.[1]

Structure

iCON Infrastructure Partners III LP (iCON III) via its GP iCON Infrastructure Management III Ltd (iML III) iCON III Water Investments Ltd I-Environment Invetments Ltd (Itochu Corp)

  • iCON III Bristol Ltd, CH, reg. Guernsey
    • Bristol Water Group Ltd, was CSE Water UK Ltd, holdco, CH
      • Bristol Water Holdings UK Ltd, holdco, CH
        • Bristol Water Holdings Ltd, holdco, CH
          • Bristol Water plc, regno 2662226
          • Bristol Water Core Holdings Ltd, holdco, CH
          • JV: Water 2 Business Ltd: 30%, JV w/ Wessex Water Services Ltd: 70%, CH
          • JV: Bristol Wessex Billing Services Ltd: 50%, t/a Pelican Business Services, regno 4143955, JV w/ Wessex Water Services Ltd
            • Searchlight Collections Ltd, debt collection services, [CH] regno 7940022
Timeline
  • 2018: Bristol Water plc was owned by iCON Infrastructure Partners III LP (50%), iCON Infrastructure Partners III (Bristol) LP (30%) and Itochu Corporation (20%).[30][31] (CH-02662226). Bristol Water is one of very few water companies in the UK that has remained in private ownership since its inception.[32]
  • iCON Infrastructure agreed to acquire a 30% stake in Bristol Water from Suez SA, bringing the 10-year relationship with Agbar (now part of Suez) to an end, following the takeover in 2006 and the sale of a 70% stake in 2011.
  • May.2012: Itochu Corporation acquired an indirect interest (20%) in Bristol Water.
  • Oct.2011: Capstone Infrastructure Corporation acquired an indirect interest (70%) in Bristol Water from Grupo Agbar, who retained a 30% interest in the company.
  • Jan.2008: a joint acquisition bid by Suez (later Suez Environnement) and Criteria CaixaCorp, resulted in the two companies controlling around 90% of Agbar's shares.

  • Mar.2018: corp structure diagram on p.75-78;
  • Mar.2017 a/cs: corp structure diagram on p.61-63; see p.79 re parents. The iCON funds hold their interest is CSE Water UK Ltd via (a) iCON Infrastructure Partners III LP/iCON III/iCON Bristol Ltd: 59%; (b) iCON Infrastructure Partners III (Bristol) LP/iCON Bristol/iCON Bristol Ltd: 30%. Itochu: 20%. UP = CSE Water UK Ltd. When sorting the drawings, see p.79.
  • Jan.2017: ...
  • Dec.2016: CSE Water UK Ltd acquired Agbar (30% holding in British Water Holdings UK Ltd); Capstone's 50% shareholding was transferred to iCON III's holdco. CIC sold its shareholding in CSE Water to iCON III Bristol Ltd, a wholly-owned subsidiary of iCON III, reg. Guernsey.
  • Apr.2016: Capstone Infrastructure Corporation was acquired by Irving Infrastructure Corporation, an indirect subsidiary of iCON Infrastructure Partners III LP (iCON III); so iCON = UP, acting through its GP iCON Infrastructure Management III Ltd (iML III). Capstone: 50%; Suez: 30%; Itochu: 20%.
  • Mar.2016 a/cs: corp structure diagram on p.64-66; see p.117 re parents. Bristol Water Core Holdings Ltd = parent of Bristol Water;
  • Mar.2015 a/cs: corp structure diagram on p.56-58; see p.112 re parents.
  • Mar.2014 a/cs: corp structure diagram on p.62-64; see last page for parents
  • Mar.2013 a/cs: CSE Water UK Ltd = ultimate UK holdco; subsid of Capstone
  • May.2012: Capstone sold an indirect share of 20% in Bristol Water to Itochu Corporation of Japan.
  • Oct.2011: Capstone Infrastructure Corporation's subsidiary "CSE Water UK Ltd" acquired a 70% interest in Bristol Water Holdings UK Ltd (formerly Agbar UK Ltd) - so now the UP.
  • Jun.2010: Suez Environnement Company SA increased their control of Agbar to 75.23% - so now the UP.
  • Mar.2010 a/cs: Bristol Water Group Ltd renamed to Agbar UK Ltd.
  • Oct.2009: Suez Environnement (part-owned by GDF Suez) announced their plan to take 75% control of Agbar; completed in Jun.2010.
  • Mar.2008 a/cs: "UP = Bristol Water Group Ltd". 49.7% of Agbar's shares were controlled by Suez and Spanish bank CaixaBank SA In Apr.2007, Suez, La Caixa and their JV Hisusa made a bid for Agbar's entire share capital. They had acquired 6.7% in Nov.2007, giving Suez and La Caixa a 56.40% stake in Agbar. The final outcome was that Suez and La Caixa reached a total of 90.01% of Agbar's share capital.
  • Apr.2006: Agbar (Sociedad General de Aguas de Barcleona SA) acquired more than 90% of Bristol Water Group plc's shares from ??.
  • Mar.2004 a/cs: "UP = Bristol Water Group plc"
  • Nov.2003: Bristol Water Holdings plc became a wholly-owned subsidiary of Bristol Water Group plc.
  • Apr.2003: Refinancing to provide flexibility to increase debt levels "significantly". Ownership of shares was transferred from Bristol Water Holdings plc to Bristol Water Core Holdings Ltd, a wholly-owned subsidiary of Bristol Water Holdings plc.
  • Apr.2001: Bristol Wessex Billing Services Ltd: Bristol Water and Wessex Water formed a 50/50 joint venture to provide a combined billing and customer contact service for their customers.
  • Feb.1992: Bristol Water plc: the company was renamed, completing the transformation from a statutory water supply company to a company regulated by the Companies Act.
  • Dec.1991: Bristol Water Holdings plc acquired 100% of the share capital of Bristol Waterworks plc, following an offer for all of its share capital.(AR-1992.03)
  • Nov.1991: Bristol Waterworks plc was incorporated.
  • 1950s-1960s: The area supplied by Bristol Waterworks increased steadily, taking in several smaller water companies.
  • Jul.1846: The Bristol Waterworks Company was formed by an Act of Parliament,[2] which authorised the construction of an 11-mile (18 km) aqueduct to carry water from Chewton and Litton to Barrow Gurney.
  • 1845: The Bristol Water Company was founded by a group of merchants to bring water from the Mendip Hills and other springs in Somerset.
Sources: Bristol Water plc Companies House. ♦ A potted history. Bristol Water. Original archived on Oct.11.2015. Accessed May.2019.

Cambridge Water Company

Chester gone to ??

Cholderton and District Water Company Ltd

Dee Valley Water plc

Not one of the originals. where did this come from? see Dee Valley WaterWikipedia-W.svg
Ancala Partners tried to buy it in 2017, but was outbid by Severn Trent. ref

East Worcestershire gone to ??

Eastbourne gone to ??

Folkestone and Dover Water Services Ltd

Hartlepool gone to ??

Mid Kent Water plc

Mid Southern gone to ??

Mid-Sussex gone to ??

Lyonnaise

  • 2011: Suez acquired by by Cheung Kong Infrastructure Holdings
  • 2003: Suez sold 75% of NWG to a consortium of institutional investors (who?)
  • 2000: Essex & Suffolk Water merged into NWL
  • 1997: Suez acquired Lyonnaise by merger
  • 1996: NEW merged into NWL
  • 1995, Lyonnaise acquired NWG
  • 1994: Merged them to form Essex & Suffolk Water.
  • 1988: Suffolk Water Company (formerly East Anglian Water Co.) bought by Lyonnaise
  • 1988: Essex Water Company bought by Lyonnaise
  • 1992: Newcastle + Gateshead merged with Sunderland == North East Water (NEW)
  • 1988: Sunderland and South Shields bought by Lyonnaise des Eaux et de l'Eclairage
  • 1988: Newcastle and Gateshead bought by Lyonnaise des Eaux et de l'Eclairage

North Surrey Water

  • Jun.2012: Veolia Environnement completed the sale of its UK regulated water businesses, which became known as Affinity Water Ltd.ref See Affinity Water Ltd.
  • Dec.2011: Veolia Water UK announced plan to unify its regulated businesses (Veolia Water Central, Veolia Water East and Veolia Water Southeast) under a single licence, and the sale of its regulated businesses.ref
  • Oct.2007: Following OfWat's PR09 Price Review, OfWat indicated a desire for the 3 businesses to operate under single licence to reduce its regulatory burden.ref, ref
  • 2000: Central and North Surrey Water unified under single Licence. East and Southeast retained separately to maintain small company premium.
  • 1991: Veolia obtains full ownership of Central (Three Valleys), and control of East (Tendring Hundred), Southeast (Folkestone & Dover) and North Surrey Water.ref

Portsmouth Water Ltd

See main article: Portsmouth Water Ltd. Portsmouth-Water-2013.svg

South East Water plc

Not one of the originals. Arose out of the merger of South East Water with Mid Kent Water. See South East WaterWikipedia-W.svg

South Staffordshire Water plc

  • The South Staffordshire Waterworks Company was formed in 1853 to provide "an abundant supply of pure water" to the inhabitants of the towns of the Black Country. South Staffordshire Waterworks Company became a public limited company in 1991 and was listed on the London Stock Exchange as South Staffordshire Water. In 1992, South Staffordshire Water Holdings was created to grow non-regulated businesses. In April 2004, in recognition of the success of those non-regulated businesses, South Staffordshire Group Plc de-merged South Staffordshire Plc, which included South Staffs Water, Echo and Rapid, as a separate listed company on the London Stock Exchange.
  • Nov.2004: the Group was acquired by Arcapita Bank, a Bahrain based investment company, and the Group was delisted from the Stock Exchange.
  • Oct.2007: South Staffordshire Plc was acquired by Alinda Capital Partners, a European and American investor in and manager of infrastructure assets, and is now part of its $7bn infrastructure fund.
  • In order to broaden its range of specialist infrastructure contracting services, the Group has made a number of acquisitions since its demerger in 2004, including OnSite, Integrated Water Services, Hydrosave, Omega Red, Data Contracts Specialist Maintenance and Perco Engineering Services and formed the SSI Services division.
  • Mar.2011: Echo Managed Services acquired Inter-Credit International, a specialist debt collection agency based in London.
  • Oct.2011 the Group acquired Cambridge Water plc, a water-only company which covers a population of approximately 315,000. The Cambridge Water business is now operated as a second supply region of South Staffordshire Water plc.
  • Jul.30.2013: South Staffordshire plc was acquired by the Global Infrastructure Fund of investment firm Kohlberg Kravis Roberts & Co LP, together with certain of their infrastructure co-investors.
  • Mar.2016: Mitsubishi Corporation acquired a 25% equity interest in the Group. ref
See main article: South Staffordshire plc

Sutton and East Surrey Water plc

Formed by merging Sutton + East Surrey, now called SES Water plc. Owned by Osaka Gas UK and Sumitomo Corporation.
See also https://www.waterplc.com/pages/about/a-brief-history/

Tendring Hundred Water Services Ltd

Three Valleys Water plc

Formed from Colne Valley, Rickmansworth + Lee Valley. See Veolia Water CentralWikipedia-W.svg

West Kent gone to ??

Wrexham and East Denbighshire gone to ??

York gone to ??

Water Privatisation Timeline

Debt-riddenThe WSCs have consistently sought to diversify by expanding into other sectors. These have mostly been unsuccessful and unprofitable. The companies have raised loans to finance these investments, thus transforming the debt-free bounty that they inherited at privatisation into debt-ridden groups with ever-lower credit ratings.[7]
JobsSince privatisation in 1989, there has been an overall decrease of 21.5% (8,600 jobs) in employment.
?date?A DWI review found that less than 80% of zones complied. The DWI is unable to prosecute in cases of serious contamination. See Water Quality.
Market FailureBecause the WSCs are monopolies, they have no incentive to improve efficiency, reduce sewers overlowing into homes, reduce leakages and reservoir flooding. A drought in 1995 resulted in an acute shortage of water. Since then, OfWat has set leakage targets.
2006 The Water Act 2003 identified 5 ways in which competition can be achieved: 1. water supply licences; 2. inset appointments; 3. cross-border supplies; 4. private supplies; and 5. competition in providing new mains and service pipes.[3]
2003 The Water Act 2003 amended the framework for abstraction licensing, revised the corporate structure of economic regulation, and extended competition to large users. It also imposed a primary duty on the Director General of Water Services to protect and further the interests of customers.
2002 The Enterprise Act 2002, which has provisions relating to the merger regime.
Nov.2000 The WSCs had become extremely unpopular due to high prices, excessive profits and very poor investment in infrastructure. Between 1990-1998, the WSCs' profits rose by 147%; with consumer prices rising by 46%.[8]
1999Disconnection of water supplies had risen sharply, without notifying the local authority, which the WSCs were required to do by law.
The Water Industry Act 1999 removed the ability for WSCs to disconnect customers for non-payment of bills; and restricted when they could compulsorily install meters.
1998 The WSCs were inflating their cost and investment forecasts, which OfWat used to set water tariffs. No (or very few) checks were being made as to whether the companies actually carried out these investments. "Far from maintaining the infrastructure, the underground network is deteriorating faster than it is being renovated. This has very serious implications for the future delivery of services as well as public health and the environment."[9]
The Competition Act 1998Wikipedia-W.svg prohibited agreements between businesses that prevent, restrict or distort competition. It also prohibited any abuse of a dominant market position.
1996 The correlation between pollution incidents and increased shareholder dividends was marked, with the WSCs being blatantly non-compliant. The Environment Act 1995 restructured environmental regulation; it created the Environment Agency, which took over the functions of the NRA, HM Inspectorate of Pollution, the Waste Regulation Authorities, and certain elements of the Department of the Environment. In Wales, Natural Resources Wales exercises the functions of the Environment Agency.
Jan.1995 The govt redeemed its "Golden Shares" in the WSCs, opening them up to the full force of the market. Thames Water, North West Water and Yorkshire Water deliberately cut their investment programmes and used the "savings" to maintain or increase their dividends. Meanwhile, OfWat agreed a price increase.[10]
1994 Public feeling was running high. The Daily Mail, normally a staunch Tory supporter, published "The Great Water Robbery: the biggest rip-off in Britain... the greatest act of licensed robbery in our history".[11][12]
1992 The Competition and Service (Utilities) Act 1992 increased OfWat's powers to determine disputes and increased the limited opportunities for competition in the industry.
1991
Dec.1989 Privatisation of the 10 WSCs. The govt wrote off £5 bn of WSC debts, and provided a 'green dowry' of £1.6 bn. The 2,183m shares were offered at a substantial discount of about 22% of their market value; the sale raised £7.6bn. The WSCs were protected from takeover for 5 years by the govt's "Golden Share", which meant that no single entity could control more than 15% of voting shares. The WSCs were given special exemption from paying taxes on their profits for 10 years. Taxpayers footed the bill for all these gifts.
1989 Under the Water Act 1989 § Privatisation Water ActWikipedia-W.svg:

The Water Act 1989 also created three regulators:

  1. The Drinking Water Inspectorate (DWI), responsible for monitoring potable water quality;
  2. The National Rivers Authority (NRA), responsible for monitoring river and environmental pollution, flood risk management on major rivers, land drainage, freshwater fisheries, water resource management and conservation of the natural environment;
  3. The Water Services Regulation Authority (OfWat). OfWat is responsible for setting the price regime, and its price regulatory mechanism is a 5-year price-cap review. OfWat also monitors performance of the water companies - it is required by law to ensure the companies are profitable.
1988 The Camelford water pollution incidentWikipedia-W.svg disaster was hushed up by the Conservatives. Environment Minister Michael MeecherWikipedia-W.svg confirmed years later that the govt had been "fearful of an unrestricted public inquiry" because any prosecution would be "unhelpful to privatisation". Poisoned people were placated and/or ignored.
1987 The Conservatives' manifesto included an intention to privatise the Water Industry, but the move was extremely unpopular with the electorate, so the issue was downplayed. However, once the Conservatives regained office, they lost no time in doing so.
1986 The govt again proposed privatising water, and again was forced to scrap the idea.
1985 The Water Industry at this point consisted of 10 state-owned RWAs that supplied 75% of England and Wales, and 29 privately-owned Statutory Water Companies (SWCs) that supplied the other 25%. A survey found aging infrastructure, chronic under-investment, pollutions problems, and declining river quality. Thatcher's govt were unwilling to fund the level of investment needed to turn the situation around. They were equally unwilling to ease the companies' severe borrowing restrictions.
1984 The govt proposed water privatisation, but public feeling was very strongly against it.
1983 The Water Act 1983 sought to change the organisational structures of the RWAs, reducing the huge numbers of local authority representatives, to create smaller and more business-like boards, like those found in private industry. The National Water Council was abolished as being ineffective. Board meetings became closed to the public. The Act was the first real step on the road to privatisation.
1980 Investment had dropped to 33% of what it had been in 1970. Thatcher's govt severely restricted the ability of the RWAs to borrow the money necessary for capital projects - and then blamed them for not building. When the EU introduced stricter water legislation, the sector could not meet the expenditure requirements and the UK was prosecuted for noncompliance. Estimates of the capital expenditure required to achieve EU standards and meet the existing backlog in infrastructure maintenance ranged from £24–£30 billion.
1973 The Water Act 1973Wikipedia-W.svg created the National Water Council (NWC), and 10 Regional water authority § AuthoritiesWikipedia-W.svg (RWAs), covering England and Wales. Each RWA was a single, unified body with responsibility for all water-related functions within a river basin or watershed. An RWA covered water supply, sewerage, sewage treatment, flood prevention, land drainage, the prevention of pollution, fisheries, and water abstraction. This "trailblazing" concept of a single authority being responsible for water extraction, water supply, sewage treatment and environmental pollution prevention, led to "considerable efficiency gains."[13] NWC board meetings were open to the public. RAs operated on a cost-recovery basis, with capital to meet investment requirements raised by borrowing from central govt and revenue from services provided.
1963 The Water Resources Act 1963 created the Water Resources Board (WRB), and 27 River Authorities (RAs); River Board areas were re-distributed amongst the RAs. RAs were responsible for conservation, re-distribution and augmentation of water resources in their area, and for ensuring that water resources were used properly. RAs inherited duties and responsibilities from the RBs, including fisheries, pollution prevention, and the gauging of rivers. The Act did not integrate the provision of a public water supply, but it did introduced a system of licenses and charges for water abstraction, which enabled the RAs to allocate water to users. The 29 Water Supply Agencies (privately-owned water supply only) also needed their supplies to be licensed.
1948 The River Boards Act 1948 established 32 River Boards (RBs), covering England and Wales, with responsibilities for land drainage, fisheries and river pollution. The River Thames Catchment Board and the Lee Conservancy Catchment Board did not become river boards, but still operated under older powers.
1945 By this time, 1,000+ bodies were involved in supplying water, and 1,400+ responsible for sewerage. Most of these were local authorities.
1900s Water was considered a public health necessity — rather than a commodity — and potable water was supplied "with the goal of universal provision, priced on a concept of social equity". Household supply was not metered, and bills were linked to property value. Local govt maintained responsibility for most water supply and all wastewater services, assisted by central govt subsidies, until 1974. Over time, 26 River Authorities gradually evolved.

References

  1. ^ Experience with the privatisation of water sectors in England and Bolivia with remarks about other countries, Global Change: Enough water for all?, F. Kürschner-Pelkmann, K. Lanz, J.L. Lozán, 2007
  2. ^ Greensands ownership of Southern Water. Southern Water. Original archived on Jul.01.2019.
  3. ^ a b c d The Development of the Water Industry in England and Wales, page 98, Department for Environment, Food and Rural Affairs, OfWat, Nov.2015
  4. ^ a b c d e f g Annual Reports. Hyder plc, Companies House. Accessed Feb.02.2019.
  5. ^ History of Hyder Consulting. Hyder Consulting. Original archived on Aug.10.2003.
  6. ^ The history of Hyder Consulting. Hyder Consulting. Original archived on Apr.01.2007.
  7. ^ Trapping Into Mutuals, Public Finance, Jean Shaoul, Sept.08.2000
  8. ^ House of Commons Select Committee on the Environment, Environmental Audit - Seventh Report 199-200: Water Prices and the Environment, HC 597-I, para.20 Parliament.uk, , Nov.14.2000
  9. ^ Water Cleanup and Transparency: Accountability of the Regulatory Processes in the Water Industry University of Manchester, Jean Shaoul, 1998
  10. ^ Britain's biggest water company is to cut its investment programme by £350 million, but Thames Water will not be passing on the savings to its 7m customers. Instead consumers - whose bills have increased by 50% since privatisation in 1989 - face yet another rise in April, by inflation plus 0.5%. The latest price rise was decided by the industry regulator OfWat during the 5-yearly price review last year. It was based on a £2.1bn capital investment plan agreed with the company. The Observer, , Feb.12.1995
  11. ^ UK Water privatisation – a briefing. Emanuele Lobina, PSIRU]], Feb.2001.
  12. ^ The Great Water Robbery. In recent weeks the penny has been dropping that something has gone horrendously wrong with the privatisation of Britain's water industry. When it was privatised in 1989 the Water Industry was hailed as the jewel in the crown of the Thatcherite privatisation programme. In reality, as a string of reports have confirmed - including the latest today from the National Consumer Council - the Water Industry has become the biggest rip-off in Britain. Water bills, both to households and industry, have soared. The Daily Mail, Jul.11.1994.
  13. ^ UK Water privatisation – a briefing Public Services International Research Unit, Emanuele Lobina, David Hall, Feb.2001