Blog

Water profits surge

June 24, 2008 at 3:48 am

It has been revealed in a number of national newspapers that the three largest water companies in the UK have seen huge rises in their profits. The expected total of the three companies’ profits is an incredible £1.2 billion, which has provoked joy amongst shareholders, but concern amongst consumer groups.

Thames Water, the largest water company in the country, saw the biggest rise in profits, which were revealed at £590 million, up 34% in the last 12 months from their previous figures.

However, for the 8.5 million customers of Thames Water this will not be such great news. Water bills have gone up by 5.9% this year alone, mirroring the rises in utility bills across the board, and they will be wondering if the company plans to share the wealth from their record profits by reducing the bills in the near future.

Severn Trent, the second biggest company in the UK, saw its profits increase by 16%, which equates to £292 million. However, the company is worried by a possible £35.8 million fine that Ofwat is planning to impose on it.

The third largest provider, South West Water, saw an 18% rise in profits to £185 million.

The figures are great news for the shareholders, who were left reeling last year when the profits of all companies were down an average of 40%, mainly due to the flooding that hit large parts of the country.

However, The Consumer Council for Water said: “It is essential that the success a company enjoys is shared with customers as well as shareholders”, which would help to ease the burden of high bill prices that have plagued so many households recently.

Posted in Uncategorized |

Leave a Reply

Your email address will not be published. Required fields are marked *