Year of woe for water industry.Public fury swelled yet again at water companies’ worsening records on sewage as firms announced steep hikes to consumer bills.Firms faced more public anger over sewage spills, Thames Water teetered on the brink of collapse and one company even inadvertently poisoned its customers.
And down in Devon, South West Water owner Pennon had to pay compensation after a parasite contamination crisis left people in hospital. Firms will be allowed to raise average bills by £31 a year, or £157 in total, over the next five years to £597 by 2030 to help finance a £104 billion upgrade for the sector.
“Water companies now need to rise to this challenge, customers will rightly expect them to show they can deliver significant improvement over time to justify the increase in bills.” But the company owes its lenders about £16 billion in debt, and many will lose what they are owed if it falls into public hands.Creditors have drawn up a £3 billion rescue loan to bail it out, which Thames Water presented to a High Court judge earlier in December.
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