Investment pledged as water firm taken over
Union calls for a return to public ownership
Hopes have been raised that a takeover of Southern Water will lead to less sewage being released into the sea along the south coast.
Asset management fund Macquarie has bought a majority stake in Southern Water for £1billion, weeks after the utility company was fined a record £90million for widescale pollution.
The new owner said the money would be used to invest significantly to upgrade its network. It will also create 1,000 jobs.
BossesatMacquariealsosaid they would be ‘strengthening a zero-tolerance mindset to environmental pollution: a commitment to significantly improving Southern Water’s environmental track record, which Macquarie Asset Management recognises is one of the worst performing in the UK water sector’.
About £2billion will be invested over the next four years to fix the pipes, pumping stations and sewers which are under-performing and causing harm to the local environment, the company said.
Macquariesaidithadbeenin regular contact with regulator Ofwat over the proposals, setting out its intentions and commitments.
Along with reducing pollution by more than 50 per cent compared with 2019, the new owner also plans to invest £230million to upgrade
Southern Water’s pipes, to reduce leaks.
It has also committed to ensuring water bills do not rise by more than inflation and will honour £123million owed to customers over historical incidents of leakage and pollution.
Customer services will also be improved to lift Southern Water’s position from second worst-performing in the UK water sector.
Leigh Harrison, head of Macquarie Infrastructure and Real Assets, said: “Southern Water needs significant investment to improve its operational and environmental performance, and financial health.
“Without it, the business will be unable to fulfil the expectations of the millions of customers that rely on its services each day or reduce its negative impact on the local environment.”
ThedealcameafterSouthern Water was fined £90million whenbossesadmitteddumping sewage illegally thousands of times over a five-year period.
The company pleaded guilty to 6,971 unpermitted sewage discharges – the equivalent of one pipe leaking continuously for seven years.
GMB, the union for water workers,saidprivateownership was ‘not the answer’ to Southern’s recent issues. GMB nationalofficerGaryCartersaid. “The waters in the South East need cleaning up and it’s time to bring back the tap into public ownership, where the needs of local customers and Southern Waters employees are out first.”