Burnham Pledges Law Change to Permit Public Ownership of Water Firms
UK Prime Minister Andy Burnham said he would legislate to repeal the ban on public ownership of water companies, with mayors gaining new powers of accountability.
British Prime Minister Andy Burnham said on Tuesday that he would bring forward legislation to repeal the prohibition on public ownership of water companies, setting out what he described as a ten-year route to "a very different water system" for the country.
Speaking at the Labour Party conference, Burnham said a strengthened Water Bill would be presented to parliament, creating scope for greater public control of water companies in the future. Under the planned changes, mayors would receive new powers to hold water companies to account.
"Water is a symbol of what has gone wrong with Britain. A service where the shareholders never lose and the public never win," he told delegates.
Water suppliers in England and Wales were privatised in 1989. Repeated failures have since made the sector a focal point for criticism that profit has been placed ahead of the environment and affordable bills. There are 11 regional water and sewage companies operating across England and Wales.
The announcement is likely to draw close attention from investors in Thames Water, the country's largest supplier, which serves 16 million customers and carries billions of pounds in debt. The company has faced mounting fines for polluting rivers with sewage, and the government and regulators are currently weighing whether to approve a creditor-led rescue plan for it.
Following Burnham's remarks, shares in Severn Trent, Pennon and United Utilities fell by between 0.9% and 1.6%.