Sometimes I wonder what Ofwat does. Judging by its recent record, the answer is: not a lot. The water regulator is currently deciding whether to allow regional water companies in England and Wales fat price rises price rises from 2010 to 2015. It seems unlikely that Ofwat will metamorphose into a fearless consumer champion and cut bills. As an organisation, it has all the energy of Bagpuss. After all, several water companies were defrauding customers for years without dozy old Ofwat even noticing.
Severn Trent was fined £2m by the courts last month for falsifying leakage figures during 2001 and 2002. Ofwat hadn't noticed until a "whistleblower" spoke out. It fined the company £35m.
Southern Water had been delivering poor service and conning Ofwat about its data for a staggering five years until 2005. Again its managers - not Ofwat - exposed the "shameful" episode. Ofwat fined Southern Water £20m in February.
Ofwat's chief executive Regina Finn said: "We expect companies to comply with their obligations and this fine sends a clear message that non-compliance is not a cheap or easy option."
So, gentlemen, there we have it: we really do expect you to behave. Because, if you don't and you later tell us you've conned the public, we might fine you 3 per cent of your turnover (as in the case of Southern Water). Water bosses must be quaking.
Of course, the one bright spot in all this is that Britain does have excellent water quality: 99.96 per cent confirmed to EU standards in 2007. Water quality is overseen by the Drinking Water Inspectorate.
And what is the point of "fining" a private monopoly? All you are doing is penalising their consumers ie the public! Where else is that money going to come from? The company is going to get its return either way. So this means less service or worse service for the public.
The truth is the regulators have no tools to work with here- All because "privatisation" of such monopolies is a total farce.
Posted by: Skagen | Thursday, 21 August 2008 at 11:15 AM