haggis: (Default)

Re: Privatised water firms

[personal profile] haggis 2020-07-04 01:39 pm (UTC)(link)
Possibly although there were EU directives before that.

The big problems (as I understand it) were
- economies of scale meant that lots of small council owned systems did not have the resources to look into innovative treatment methods or to run trials and evaluate them or run the complex geospatial modelling and modelling required to predict storms.

- you can get around this by combining them into bigger organisations. That works well for Scotland (pop 5.45 mil) but it's harder in England. UU supplies 7 million between Cheshire and Cumbria, which includes 23 local authorities. Cumbria's population and council has different needs and priorities to Manchester.

- council priorities are frequently going to place funding eg social care over funding expensive environmental improvements. And that's before you factor in different political parties running each council.

- local government funding is set by central government and is a perpetual easy target for cuts.

- If the council is fined for failing to meet water standards, will this lead to a change in leadership from the council, who are elected by an electorate who are largely apathetic about this area? And if they do an outstanding job (or turn a failing system into a successful one) - would the effort even be noticed? UU's investors may only care about money but the costs of prosecution means that poor operation puts their investment at risk.

- And slightly more contraversially, the change to non-council ownership resulted in outsourcing the design and construction parts of the process (which is where my company comes in). That costs a bit more per hour spent on design/construction BUT when the design/construction work is not required, the water company doesn't have to keep paying those engineers. And down the scale, my company has a mix of permanent and contract staff for the same reason. The contract staff get paid a higher hourly rate but have a weeks notice (and routinely mock the permanent staff as slackers and lightweights).