Water firms face overhaul

WATCHDOGS are demanding new powers to crack down on greedy water companies amid allegations of profiteering and windfall payments to fatcat executives.

The industry regulator, Ofwat, has written to Environment Secretary Michael Gove about serious concerns it has with the management of the privatised monopolies.

The letter sets out a series of measures to tackle the scandal and asks the Government for powers to force the industry to put customers first.

Significantly, Ofwat has the power to set water prices and could use this mechanism and the way water company licences are framed to demand a new culture. Mr Gove has said that water companies have become a ‘licence to print money’.