The concepts of ‘regulation’ and ‘licencing’ have been corrupted and rendered meaningless when it comes to the water industry.
Regulation and licencing are fundamental to a modern democracy. From doormen to cab drivers, from pubs and clubs to residential landlords, all need a licence to operate. The regimes are there to keep us safe.
To gain a licence you must show you are a ‘fit and proper person.’ The slightest misdemeanour and that licence can be taken away. You can’t work in that industry. Your premises are closed.
None of this applies to the water industry. Sure, they are fined from time to time. But they have deep pockets. In effect it is the consumers who pay the fines through their bills. Fines are built into their business model.
What counts is whether a regulator is prepared to revoke a licence. Thames Water has demonstrated multiple times that they are not fit and proper to exercise stewardship over our water. They have committed massive licence breaches of both financial and environmental obligations for 35 years and are in breach right now.
No matter how gross their violations, Ofwat will not take their licence away. This is why Steve Reed’s promise to address the water crisis through regulation is such utter nonsense.