Shareholders at England’s water firms have received over £23billion in dividends since 2010, an analysis has shown.
They were given payments worth £23.4 billion between 2010 and April 2022, an analysis of water regulator Ofwat figures revealed.
Campaigners have accused the water companies of putting profit before the nation’s rivers and people’s health.
Charles Watson, chair and founder of River Action, said, “The payment of billions of pounds in dividends to shareholders in our water companies has come at the expense of river health and, increasingly, river users getting sick because of the thousands of tonnes of human sewage that are being discharged on a daily basis.
“The health of our rivers and people must come before corporate profit. Let’s be clear, the water companies with their failing business models have trashed our rivers and we’ve had enough.
“These polluters must clean up their act, invest in climate proof infrastructure, fix their leaky pipes and build new reservoirs.
“Our regulators also need to do the job they are tasked with by enforcing the law to stop the water companies wrecking the environment.”
Over 90% of the English water companies are owned by international investors, private equity funds, and banks.
Only 8.5% of shareholders in the water sector are UK pension funds.
Environment minister Robbie Moore said: “We are clear water companies must not profit from environmental damage and through the Environment Act 2021 have given Ofwat increased powers that will better enable them to hold companies to account for their performance.
“Using these powers, Ofwat introduced a new licence condition last year to require companies to demonstrate dividends are linked to performance for customers and the environment. Ofwat now intends to issue updated guidance to provide greater clarity on how it assesses companies’ dividend decisions and compliance with their licence.
“This will include a clear reminder that companies carefully consider serious criminal breaches of the law when taking account of their performance and potential dividend payments.
“Where this guidance is not followed, Ofwat will not hesitate to undertake enforcement action.”
Thames Water– the UK’s biggest water supplier, with 16 million households across London and the South East – last week revealed that its investors had pulled a £500 million funding lifeline that was due to be paid at the end of this month.
It is understood that investors pulled the deal when Ofwat refused to bow to the water giant’s demands for a 40% bill hike for customers, an easing of capital spending requirements, as well as leniency on penalties for failing to meet targets.
Mr Reed, who obtained the dividend data through a written parliamentary question, said: “The Conservatives have let water companies starve our broken sewage system of investment while funding their dividends from debts.
“The result is stinking, toxic sewage pouring into our rivers, trashing nature, damaging tourism, and putting kids’ health at risk.
“Labour will put failing water companies under special measures to force them to clean up their toxic mess. We will give the regulator tough new powers to stop water companies polluting our rivers with sewage and bring criminal charges against water bosses who illegally allow this sickening pollution to continue.”
A Tory source said the Conservative government is holding water companies to account.
They added: “We are banning water bosses from receiving bonuses if a company has committed serious criminal breaches and increasing inspections fourfold.
“In contrast, Keir Starmer and Labour have no plan for cleaner water and simply snipe from the sidelines.
“Under Labour in Wales, the average number of sewage spills from storm overflows was two-thirds higher than in England.”
Water UK, which represents water companies, has been contacted for a comment.
