The behaviour of private water companies is widely recognised as unacceptable: they flout regulations, cause significant environmental harm, neglect their responsibilities, and still pay enormous sums to directors and shareholders. Ofwat’s rulings and fines appear ineffective, often penalising consumers (Letters, 18 August), while renationalisation is dismissed as prohibitively expensive.
We propose an alternative means of controlling private-sector companies – replace Ofwat’s monetary fines with state-owned voting shares of equivalent value. This approach would have several immediate benefits. By exercising shareholder rights, the state – on behalf of the public – could directly influence company policies; the public purse would gain revenue from dividends; and over time, as the state’s shareholding increased, full nationalisation would become financially feasible.
Dr Ruth Sinclair and Dr Jill Vincent
Loughborough, Leicestershire
• Your article says that not a single reservoir has been built since water privatisation (How can England possibly be running out of water?, 17 August). But close to 100 were built in the 35 years prior to privatisation. The plundering of our public services and natural resources is a national disgrace. Public ownership is the only way to end this grisly affair.
John Lockwood
Carshalton, London
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