The privatisation of the water industry has been dubbed a “colossal scam” by political commentator, James Schneider.
Leading scientists have warned that Britain could be hit with water shortages this summer, despite having endured the wettest 18 months since records began.
A lack of preparation means the country is vulnerable to the “all or nothing” rain patterns being experienced more frequently due to climate breakdown.
There have been no new major reservoirs built in the past three decades, rivers have been engineered to move water quickly so it runs into towns and cities – causing floods – and the sea, and many wetlands have been drained and farmed or built on.
This means the water that pelts the UK in winter is not being stored properly, causing floods followed by water shortages in summer.
The news comes as the UK’s largest water company, Thames Water, is scrambling to find extra cash after it handed out millions of pounds worth of dividends to shareholders and bonuses to top bosses in recent years.
Shareholders of the firm said on Thursday that industry regulations make its business plan “uninvestible”, after previously agreeing to an emergency funding package.
The stark update highlights the deepening financial woes for the firm which is sitting on a debt pile of £14.7 billion.
But despite the troubles, Thames Water revealed in December that it paid a £37.5 million dividend to a parent company.
When asked to explain the move by Ofwat, Thames said the money had been moved to help pay its debts.
Here’s James Schneider highlighting how ill-served UK consumers have been by the industry’s privatisation in 1989.
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