The south-west is the second wettest region of the UK, after Wales, We had an extremely wet March and April although the last 10 days have been hot and dry. Virtually the whole area is now under a hose pipe ban,
The population of the south west grew by 7.8% from 2011 to 2021 alone and Devon and Cornwall also have to cater for a huge influx of tourists in the drier spring and summer months. Nevertheless, SWW has not built a significant dam since 1989. It talks about increasing dam capacity, but these are minor projects often involving the use of disused china-clay pits, each holding less than a 40th of total capacity. They also cloud the issue by discussing how they help farmers to establish storage for their own needs on their own farms, which is hardly relevant to a region wide hosepipe ban.
South West Water has just declared a dividend on £112m despite losses on £8.5m, presumably after deduction of their £2m fine for illegal discharges of sewage.
The typical shareholder in a water company is a pension fund because the former require a steady and significant cash inflow to match their outgoings and the former can provide just that, provided they don't go spending cash on big investment projects.
Whatever you think of privatisation, the difference between the privatisation of water on the one hand and other sectors is that there is no choice for the domestic customer and therefore no competition. There have been no benefits and the industry generally performs abysmally. The regulator is weak: often headed up by a senior figure who's retired from within the industry itself. From 2012 until 2022, the chainman of Ofwat was is Jonson Cox, who before this appointment was... CEO of Anglian Water. Three quarters of AWG shares are owned by pension funds, the largest of whom is the giant Canadian fund, CPP.
This cannot go on. How can it be that one of the wettest areas in a nation world renowned for being wet cannot provide sufficient and reliable water supplies for its residents? How can it be that raw sewage is dumped into the sea in a region which is highly dependent on the tourist industry? It's simple: too little investment because of the need to maintain dividends to pension funds.