Water Companies: Private Ownership

Baroness Grender Excerpts

Wednesday 29th October 2025 Lords Chamber

[Lord Katz (Lab)]

The Government have indeed published our analysis of the cost of renationalising the water sector, which I believe is what my noble friend is getting at. Our analysis is that—on the basis of regulated capital value, which takes into account not just equity but debt—it would cost at least £100 billion to renationalise the water industry. We are not going to unpick the current ownership model, during which time underinvestment and sewage pollution would only get worse. We believe that the answer is better regulation. We have introduced the Water (Special Measures) Act, which has already hit bonuses for 10 water executives and toughened the rules so that bosses face up to two years in prison for covering up sewage spills. Following the Cunliffe review this year, we are taking forward a number of reforms to the sector, chiefly the creation of a powerful new water regulator.

[Baroness Grender (LD)]

My Lords, does the Minister regret that average household water bills will rise by £123 a year from this April? Given that so many families already spend more than 3% of their income on water, what can be done to reverse years of shareholder and executive bonuses without improved services and genuine reinvestment? Why is it that customers even now, even after the Cunliffe review, are still having to bear the cost of historic underinvestment?