Erick Burgueño Salas
Research expert covering climate change and the water industry
Water industry in the UK - statistics & facts
Every day, the water industry in the United Kingdom delivers drinking water to millions of taps across its four nations. In England alone, almost 27 million dwellings are connected to the public water network. At the other end of the tap, British water utilities also collect and treat sewage before returning it to nature, a task that can generate environmental issues if not performed well. In recent years, the UK’s water industry has been under public scrutiny due to severe cases of pollution, which has showcased a myriad of infrastructure issues amid a concerning financial crisis for some of its companies.
Meanwhile, England and Wales's water and wastewater sector differs, with several companies available and having moved from the public to the private sector in 1989. Nowadays, there are ten fully privatized regional water authorities, with Thames Water being the biggest one, both in terms of turnover and volume of water supplied. In FY 2022/23, Thames Water, which serves most of Greater London and other neighboring counties, supplied 2.6 billion liters of potable water every day to its customers.
In the fiscal year 2021/22, South West Water was the only firm to declare profits after tax (PAT), with all other water companies reporting losses. Thames Water reported the biggest loss that year, and as of June 2024 was so indebted that it faced the prospect of nationalization. Despite the losses across the sector, all the companies paid out dividends to their shareholders during the same year.
To worsen the situation, in 2023, water companies in England released untreated sewage into rivers and coastal areas more than 460,000 times over a period of approximately 3.6 million hours. United Utilities, which provides water and wastewater services in North West England, was the worst offender that year. South West Water, Severn Trent Water, and Yorkshire Water were also amongst the companies dumping the largest amounts of untreated sewage into water bodies.
Between growing pollution concerns and rising water bills, the UK’s privatization model has been put under scrutiny, with seven out of 10 Brits now of the opinion that all water companies should be renationalized and run in the public sector. Despite public opinion, none of the biggest political parties in England is so far advocating for wide renationalization of the water sector.
Private vs. Public
The structure and regulations of regional water utilities in the UK vary across countries. In Scotland and Northern Ireland, such services are provided by only two publicly-owned companies – Scottish Water and NI Water, respectively. In the fiscal year (FY) 2022/23, Scottish Water reported a revenue of more than 1.8 billion British pounds, making it one of the biggest utilities in the Union based on turnover.Meanwhile, England and Wales's water and wastewater sector differs, with several companies available and having moved from the public to the private sector in 1989. Nowadays, there are ten fully privatized regional water authorities, with Thames Water being the biggest one, both in terms of turnover and volume of water supplied. In FY 2022/23, Thames Water, which serves most of Greater London and other neighboring counties, supplied 2.6 billion liters of potable water every day to its customers.
The private model in crisis
With decades having passed since Welsh and English water companies were privatized, the British water industry is now dominated by overseas investment. Nevertheless, utilities find themselves in financial struggle and under investigation for potential breaches of environmental permit conditions, operating an overloaded infrastructure that needs urgent upgrades.In the fiscal year 2021/22, South West Water was the only firm to declare profits after tax (PAT), with all other water companies reporting losses. Thames Water reported the biggest loss that year, and as of June 2024 was so indebted that it faced the prospect of nationalization. Despite the losses across the sector, all the companies paid out dividends to their shareholders during the same year.
To worsen the situation, in 2023, water companies in England released untreated sewage into rivers and coastal areas more than 460,000 times over a period of approximately 3.6 million hours. United Utilities, which provides water and wastewater services in North West England, was the worst offender that year. South West Water, Severn Trent Water, and Yorkshire Water were also amongst the companies dumping the largest amounts of untreated sewage into water bodies.
Between growing pollution concerns and rising water bills, the UK’s privatization model has been put under scrutiny, with seven out of 10 Brits now of the opinion that all water companies should be renationalized and run in the public sector. Despite public opinion, none of the biggest political parties in England is so far advocating for wide renationalization of the water sector.
