In the first two posts of this series, I shared my personal battle with United Utilities and uncovered who really owns our water companies — from sovereign wealth funds to overseas pension schemes. Now we turn to the big question: what if water in England was renationalised? Could it actually solve the problems of leaks, sewage, and unfair costs for customers?

The Current Problem

Right now, the system is designed to extract profit. Since privatisation in 1989:

• £57–£78 billion has been paid out in dividends to shareholders.
• In 2022 alone, water companies paid £1.8 billion to investors.
• Many companies report losses after debt and interest payments, yet still find ways to pay dividends.

A large share of those dividends goes to overseas sovereign wealth funds and global investors. Meanwhile, customers face:

• Leaks that waste up to 30% of treated water in some regions.
• Rivers and seas polluted by sewage overflows.
• Bills rising above inflation.
• No alternative provider if the service fails.
  

The Alternative: Renationalisation

If water were brought back into public ownership, the logic changes:

• No shareholders = no dividend extractions.
• The £1.6–1.8 billion a year currently leaving the sector could be reinvested.
• Over ten years, that’s £16–18 billion in new infrastructure funding.
  

What Could That Money Do?

With £1.8 billion extra per year, the government (or not-for-profit bodies like Glas Cymru in Wales) could:

• Replace thousands of kilometres of ageing pipes to reduce leaks.
• Upgrade sewage treatment works to stop spills into rivers and seas.
• Modernise household connections and metering to improve efficiency.
• Cushion customer bills, instead of raising them to fund dividends.

The Welsh example is proof this works: Dŵr Cymru (Welsh Water) is a non-profit model that reinvests surpluses — around £200 million every year — back into its system, improving resilience and lowering bills for customers.

But What About the Cost?

Renationalisation wouldn’t be free. Estimates suggest it would cost the government £50–90 billion to buy back the English water companies from private owners. That’s about £3,000 per household if paid upfront — though in practice, it would likely be financed over decades via bonds.

Critics argue this is too expensive. But remember: customers are already paying through their bills for investor profits, debt interest, and inefficiencies. Under public ownership, at least those billions each year would go back into fixing the system.

Why It Matters to Me — and You

From my perspective as a customer who’s been left stranded, the argument is simple: why should I pay higher bills for poor service while foreign investors pocket hundreds of millions? If water were run for public benefit, my ordeal — and many others like it — might have been handled faster, fairly, and with accountability.

Where This Is Leading

In the next post, I’ll look at the regulatory and accountability gap. Who’s supposed to protect customers from all this? Where are Ofwat, the Advertising Standards Authority, and Trading Standards when we need them most?

---

💧 Takeaway: Renationalisation isn’t just a political slogan. It’s a practical solution that could redirect £1.8 billion a year back into fixing our pipes, protecting our rivers, and supporting customers. The question is: do we value public health and environmental protection more than shareholder dividends?