I've worked in the industry since 1996 and Thames Water are one of those in whom we have embedded consultants. We are intimately familiar with their inner workings and, being embedded, are treated/privity to the same insider knowledge as any direct employee.
The post-privatisation 1990s saw a complete turnaround, from the abject failure of the industry under previous governments (Labour and Tory in the 60s and 70s) to seeing massive investment and infrastructure improvements. It's only once things became decent that the likes of RWE and Macquarrie slimed their way in.
We used to have ^that... and it was an absolute **** show, with zero investment, miles of red tape, siloed working, contradictions and arguments over asset responsibility, widespread dissonance, highly inconsistent bill/pricing and a service so far below even current standards you couldn't imagine.
It's things like that which led to the consolidation of responsibility under the ten water authorities.
Increasing taxes to try and fix what the previous government ****** up is pretty common. This is basically the same thing, at this point.
Dividends... or loan repayments?
Most of the loans are bonded debt, which legally must be repaid.
TW shareholders have not been paid dividends for over 5 years, now.
CEO Steve Robertson was booted out of TW, supposedly over failed leakage targets, although the truth is more telling in regard to CEOs vs their executive board members and what happens when they try to take a more active role in sorting things out.
The issue is that it's not the CEOs who are the problem. They're little more than a figurehead. You want to look more closely at the executive team and the owners...
They could buy the company cheap and **** over the shareholders, yes. That was Corbyn's plan.
What they'll then stumble over are the billions in bonded loans, which they will still be legally obliged to repay, along with the costs of improving and then maintaining service. Without private investment, that will come down to public borrowing.
Thing is these companies have been operating illegally, so what legal grounds so the shareholders actually have especially if they knew about it. It might be possible to hold them partially responsible. If the government had some balls they would mug them off and play them at their own game.
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