Press release: The customer pays whilst water companies profit

“The water system is broken and no amount of tinkering around the edges with fines will fix it. Our rivers, lakes and seas cannot wait for poorly conceived plans, unmet promises, whilst water companies continue to pollute for profit, and all our regulators can do is offer a stern ticking off, and pocket money fines. All water companies are failing and the system needs a radical overhaul so that we don’t continue to bailout shareholders, whilst our waterways deteriorate, and basic needs for clean water cannot be met  ” Prof Becky Malby Ilkley Clean River Group.

1. Water companies propose massive ‘improvements’ in the water system in the Price Review process, this year at an average price to customers of a bill hike of £19 per household before inflation, until 2030 (£94 in total before inflation a rise of 21%). Here in Yorkshire our bills have already risen by £53 in the last 2 years and the proposal is to increase this by a further £107 by 2030 (before inflation). Of our current bills 19% is used to pay off  company debt – that is loans received in order to ‘invest’ in performance, whilst at the same time under performing.

2. This proposed bill hike will now be offset by a small reduction in bills as a penalty for poor performance. In Yorkshire the reduction is 36M for over 5M customers. That amounts to £7 per household. Last year the penalty was circa 20M, and overall performance is not improving. Clearly these penalties make no difference whatsoever to company performance. Year on year penalties for missing performance requirements, whilst at the same time increasing bills against re-set performance targets, dressing basic maintenance of our sewage system up as ‘improvements’ needing investment, is clearly ridiculous.

3. Any household juggling a tight budget this year will be appalled at the blatant and flagrant misuse of customer’s money to reward shareholders and executives, whilst continuing to destroy our rivers, lakes and seas.

4. At the same time every water company is under criminal investigation by Ofwat and the EA for illegal activity – breaches of their permits and illegal sewage discharges, catalysed by sewage campaigners at Windrush Against Sewage Pollution investigating the data.

5. Water company performance continues to deteriorate, whilst their financial distress increases.

We want the government to

1. Put failing water companies into special administration, with no ownership options off the table. Stop bailing them out with public money and stop tolerating shocking pollution of our rivers, lakes and seas for profit.

2. Stop illegal pollution. Water companies should only dump untreated sewage in our rivers, lakes and seas in exceptional circumstances (that’s the law). Government needs to set out to the regulators exactly what that means, as they dont’ agree.

3.Stop bill hikes. We don’t accept any more bill rises until water companies are operating legally, and meeting their performance requirements.

Notes

1. You can find a briefing on our broken sewage system provided to all MPs here
2. Ilkley Clean River Group has been campaigning for 5 years to stop the sewage pollution of the River Wharfe
3. We have collaborated in The Sewage Campaign Network to produce amendments to the Water (Special Measures) Bill to address the broken water system
4. Ilkley Clean River Group is a founding member of The Sewage Campaign Network:Henley Mermaids, Ilkley Clean River Group, Save Windermere, SOS Whitstable, and Windrush Against Sewage Pollution are a network of leading grassroots campaigners steeped in our local communities, trying to save our rivers, lakes and seas from sewage pollution; and the founders of the current massive public storm. Our coalition consists of the forerunners in the campaign to stop sewage pollution, passionate community members committed to safeguarding rivers, lakes, and coastlines from pollution.  We have not been captured, we don’t take money from government, regulators or the water companies; we are truly independent. We take pride in our integrity. We have found that in order to save our local waters, we have had to step up and challenge the whole water system, campaigning to get the law enforced. We are also mobilising hundreds of community campaign groups like ours, providing briefings, educational sessions, supporting the practicalities of water testing, campaigning and lobbying. Each group within the network operates independently, but we speak as one, channeling the public’s outrage at pollution for profit.
5. Ilkley Clean River Group secured the first river to be awarded Bathing Status. The river is persistently rated poor water quality and the Status is up for renewal in 2025. If it remains poor the river will be ‘de-designated’ by Defra
6. The campaign has secured some investment from Yorkshire Water with a new Sewer in Ilkley, and there is a plan to clean up the river currently going through the Ofwat PR24 process.

Karen Shackleton 07312112061

Prof Becky Malby 07974777309

Meanwhile back at YW HQ:

“Nicola Shaw, the chief executive of the water utility, received a base salary of £585,000 and a total pay package of £1.03mn — including a £371,000 bonus; 42.2 per cent of the maximum allowed — according to the 2023-2024 annual report published this week.”
“Yorkshire Water paid £84.1mn in dividends within the group structure, up from £62.3mn over the previous 12 months.”

Plimmer G, (2024). Yorkshire Water boss receives £1mn as bonus ban announced. Financial Times.

Yorkshire Water’s Annual Performance Report can be found here