The Burning Question of Water Control

Andy Burnham’s promise to explore “more control” over essential services like water and energy has sparked hope among campaigners and experts. For decades, Britain’s water industry has struggled with privatization woes, prioritizing shareholder profits over public needs.

The current system has proven catastrophic, as pointed out by Feargal Sharkey. Thames Water, serving 16 million customers in London and the Thames Valley, teeters on the brink of collapse. This is no surprise given the industry’s history of underinvestment and bloated profits for shareholders.

Advocates like Common Wealth and We Own It have long argued that private ownership comes with a steep price: higher utility bills, neglected infrastructure, and excessive profits for investors. In contrast, public ownership has been shown to bring accountability and better standards to the beleaguered water industry.

Burnham’s government would face significant challenges in making this vision a reality. Nationalizing the sector would require a bold move, with no easy answers on how to make it work. Economist Chris Hayes notes that even if the government were to acquire companies, the process would be fraught with difficulties and potentially expensive.

One possible solution lies in regional regulators, as proposed by Oxford University professor Dieter Helm. By empowering local authorities to oversee water management, Burnham could sidestep some of the more contentious issues surrounding nationalization. However, this approach raises questions about funding and safeguards against cronyism and corruption.

The Thames Water problem hangs precariously in limbo. Burnham’s government will soon face an urgent decision on whether to impose a special administration regime (SAR), effectively taking control of the company temporarily. This move, though costly, might provide a much-needed jolt to the stagnant water industry.

As the dust settles around Burnham’s tenure, it is clear that the status quo won’t do. Britain needs a radical overhaul of its water management system, and tough decisions must be made. Whether through nationalization or regional regulation, the key lies in giving citizens more control over their essential services – and holding those in power accountable.

The fate of Thames Water is just one symptom of a far larger problem: an industry run by those who prioritize profits over people, where accountability is scarce. As Burnham takes office, he must confront this grim reality and act swiftly to address the festering wound in Britain’s infrastructure.