Thursday 6 October 2005 8.53pm
Thanks for the link. That article reminds me of the bit in the film The Corporation
which looks at how efficient private companies are at externalising threats to their profitability. Give them a requirement to reduce leakages, and what do they do? Invest some of the millions of pounds they've been making in profits over the years in reducing leaks and putting in new pipes? No, they reduce the water pressure and force the people who generate the profits for them (everyone) to spend more money on something they should already be getting for their money (adequate water pressure). You do have to admire market capitalism for its sheer audacity in passing the buck sometimes. A cynic would even suggest that Thames might have shares in the water pump company, so that they get even more profit out of the situation.
Time for some tighter regulation from OFWAT, or have Thames found a loophole that can't be plugged (sorry, bad pun) without primary legislation? If the latter, it is time to legislate.
The good news also comes from The Corporation - at the end, where the people in Bolivia rioted against the enforced privatisation of the water supply (it was even made illegal for people to collect rainwater) and took ownership of the water company back into the public's hands. Not that posting on this forum should be taken in any way, shape or form to be an incitement to riot, officer. Wouldn't want to be arrested under those terrorism laws...
(I'm sure Thames are spending some money on reducing leaks in the way I suggest, but clearly not enough.)
Edited 2 times. Last edit at 6 October 2005 9.02pm by Andrew.