30 November 2022

According to research by The Guardian, foreign investment firms, private equity, pension funds, and companies registered in tax havens possess more than 70% of the water industry in England.

As the public and some politicians clamour for the sector to be held accountable for sewage dumping, leaks, and water shortages, the intricate web of ownership is exposed. As pressure mounts on the sector to invest more money in repairing and replacing deteriorating infrastructure to safeguard the environment and the general public's health, six water corporations are being investigated for possible criminal acts.

The control of the water industry has shifted more than three decades after the sector was sold off with the promise that the public would become individual small shareholders or "H2Owners," and is now dominated by foreign investment vehicles, the ultra-wealthy, businesses in tax havens, and pension fund investors. According to Dr. Kate Bayliss, a research associate in the department of economics at Soas University of London, the ownership structure is such that transparency and accountability are constrained.

Many well-known international investment funds and sovereign wealth funds are among those with sizable stakes. According to a study of shareholdings as of October of this year, the US investment firm BlackRock and its subsidiaries held approximately 10% of the equity in Severn Trent, while the Qatar Investment Authority, with a 4.6% stake, is the third largest stakeholder in Severn Trent.

According to the research, 8.7% of Thames Water is controlled by China, and 9.9% is owned by an affiliate of the Abu Dhabi Investment Authority.

The analysis shows that corporations from 17 nations control at least 72% of the sector, with UK firms owning 10%.

Ash Smith, a co-founder of the campaign group Windrush Against Sewage Pollution commented: “The smell of privatisation and weak regulation reached far across the globe and attracted the most powerful and clever shareholders’ funds.

“The deal was unbelievable – buy a refundable stake in a water monopoly and feast on the guaranteed annual bills from captive customers in exchange for nothing.”

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