Thames Water, like other water companies, had no debt at the time of privatisation. But since 1989, these utility firms have borrowed vast sums to pay out more than £65 billion in dividends. Privatisation was of course supposed to drive investment. Instead it has fallen. Taxpayers and bill payers have been rinsed, and it is not over yet.
Shareholders in Thames Water today withheld a planned injection of £500 million of much-needed “survival” funding, sparking calls for the firm to be placed into special administration. This comes only months after it was revealed that ministers had drafted plans for the nationalisation of the heavily-indebted company. This would not come cheap.
