From the Guardian · · 1m 20s
Burnham warned not to water down public control pledge
Key allies say giving mayors oversight of water firms without financial control falls short of promises to bring utilities under public ownership.
In brief
Key allies say giving mayors oversight of water firms without financial control falls short of promises to bring utilities under public ownership. Oversight without ownership may give local leaders responsibility for water companies without the power to fundamentally change them. Originally reported by the Guardian.
Allies warn against watering down pledge
Key supporters of Andy Burnham are warning the PM not to back down on promises to put water companies under public control.
Regional oversight plan emerges

The PM is considering creating regional bodies to hold water companies accountable, including questioning bosses on bills and sewage spills.
Oversight without ownership isn't enough
Mathew Lawrence warns that public oversight without ownership won't provide meaningful control over privatized companies.
“Can they ban dividend payments, stop financial extraction, reduce the cost of capital that determines overall cost, or choose to take the service back into public hands?”
Real power means financial control
Mark McVitie says public control must mean more than scrutiny. The public interest needs to be enforced against monopoly operators.
“Public control has to mean more than public scrutiny.”
Nine regional bodies under consideration

Burnham may create nine regional bodies matching the geography of England and Wales's biggest water companies to set objectives and hold bosses accountable.
Thames Water decision looms
Thames Water has £18.5bn in debt against £23bn in assets. Burnham may use special administration as a first step toward nationalization.
Customer complaints surge 48%
Household complaints about water companies jumped 48% year on year, the steepest annual rise in two decades.
“just how dissatisfied many people still are with the state of the water sector and the enormous task water companies face in rebuilding consumer trust”
The takeaway
Oversight without ownership may give local leaders responsibility for water companies without the power to fundamentally change them.




