Not my words below. I copied a post from another forum. Thought it was an excellent explainer for how the privatised water companies have got us into such a mess and how they are incapable of getting us out of it.
"When I did my Human Ecology Degree back in 1991 to 1995, I discovered why Thatcher privatized water in England and Wales.
Her government had signed up to an EC directive to improve water quality across the then European Community in 1987.
However she then discovered that to do so in the UK at the time, would have meant serious investment by the public water boards and thus in turn would have meant raising income tax by around 2 pence in the pound to pay for it.
This was an anathema to Thatcher, so the water boards in England and Wales were sold off.
Now every Merchant bank in London were more than happy to lend these new water companies low interest loans to do the infrastructure work as they would be selling a commodity everybody needs
However the new private companies refused as it would have reduced shareholder dividens. Instead water bills for customers were increased on average by 200%, in some places in England by 400%. This was much higher than paying an extra 2 pence in the pound in tax.
At the some time, Thatcher's government introduced the environmental rivers authority, a watchdog, but of course with no real legislative teeth.
This set the benchmark for the water industry in England and Wales for the past 30 plus years.
The Private water companies know they have little to fear from government.
I remember in the summer of 1992, Yorkshire water cheerfully paying an increase in wages to it's board of directors at the sane time having to tanker in water that summer from other regions as it hadn't even started to deal with the leaks in the system.
The Private water companies have for the past three decades been breaking the rules on the anount of raw sewage dumped into our rivers and seas in England and Wales.
It's only now however during the pandemic that it has become blatant.
In Scotland, people voted to retain a publicly owned water and sewage body. This means two things, Scottish parliamentary scrutiny of what it's doing, cheaper water bills as there are no shareholders to keep happy.
I found this out when I moved back to Scotland in 2013 from Yorkshire. My water bill is almost £200 a year cheaper than when I lived in West Yorkshire.
The reality is, climate change will mean we need to make strategic decisions about water use and water quality, not only for ourselves, but in agricultural systems, river ecosystems and estuaries.
The only way that can be done in England and Wales is by either, bringing in a watchdog with real legislative powers and teeth to oversee the private water companies, or better still, nationalizing those companies.
The latter idea will be scorned by a Tory government, but I predict, as the consequences of climate change really begins to bite.
When we see more droughts and extreme flooding. When arable crop and fruit yields fall, not only in the UK, but in Europe as a whole. Oh and remember 6000 farmers retired here in the UK in 2016, we we now have to import over 40% of our essential foodstuffs.
Government is going to be forced to take a closer control on all aspects of water and sewage and probably re-nationalize the water industry because of the real threat to the security of water supply, agriculture, ecosystems and sewage.
A shortage of water, or bad floods, directly effects agriculture, which feeds through to prices in supermarkets.
I'm old enough to remember the summers of 1975 and 1976. In the latter year, people were being forced to get water from stand pipes in some areas because of severe drought.
Fish died in rivers because of a combination heat and low river levels and sewage.
Climate change is only going to increase the possibility that we will see such times again.
The United General Secretary warned this year that wars may start over water in the coming years.
We need to get on top of the potential problems now to our water and sewage systems. We cannot rely upon private water companies to do it as they have proven recently.
The trouble is, with a government as corrupt as ours, I don't see anything will happen until we reach crisis point and that is getting closer every year."