By love-89.com In a recent interview, Professor Pedro Arrojo-Agudo voiced strong criticism of the UK’s water privatization model, labeling the regulator, Ofwat, as “complacent” in its oversight of water companies that prioritize shareholder profits over public service. He argued that water systems should be viewed as public utilities rather than the domain of private corporations.
Arrojo-Agudo’s comments follow a report from the UN special rapporteur on the human right to clean water, which highlights significant flaws in the privatized water system in England. He pointed specifically to the issues of transparency and public engagement in the current model, stating that private companies often conceal their corporate strategies, resulting in local authorities being unable to effectively regulate due to an imbalance of power and a lack of political will.
Matthew Topham from We Own It, an organization advocating for the return of water services to public ownership, echoed Arrojo-Agudo’s sentiments, calling the report a “brutal rebuke” of the UK government’s management of the water industry. This criticism came after Ofwat ordered English water companies to reimburse customers £158 million for failing to control pollution, which has reached its highest levels since 2020.
In response to the mounting criticism, Environment Secretary Steve Reed dismissed calls to revert to public control of the water sector, citing potential costs in the tens of billions of pounds. He referenced a report funded by water companies to bolster his argument, which critics claim indicates a shift towards the “reprivatization” of water services, as Reed aims to attract new private investments.
Arrojo-Agudo advocates for a non-profit model of water management, promoting public-public partnerships and participatory governance that includes civil society. He highlighted a stark contrast with practices seen globally, noting that over 90% of cities worldwide manage their water services through public ownership, with cities like Paris achieving 100% municipal control. He commended Paris for illustrating the benefits of public ownership, including a focus on human rights, reinvestment of profits, enhanced transparency, and high customer satisfaction rates ranging from 90% to 96%.
He emphasized that water and sanitation services represent natural monopolies, making market competition impractical, whether in the hands of private entities or public institutions. The discussion on these significant issues continues, with the Department for Environment, Food and Rural Affairs being approached for further comments.