Ofwat is refusing to limit the soaring debts run up by water companies as research reveals the firms have outstanding borrowing of almost £54bn accrued since privatisation.
Customers are paying on average £80 or 20% of their water bill towards servicing debt and rewarding shareholders, according to the Competition and Markets Authority (CMA).
The scale of debt, or gearing, taken on by the nine main water and sewerage companies in England is raising concerns about their financial stability as interest rates rise.
The level of net debt held by water companies is revealed as Guardian data shows the main water and sewerage firms in England have paid dividends to shareholders of £65.9bn up to 2022.
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