Pete Marshall
Senior Member
I saved £250 as would many other who are careful with water. Many, many people would pay more, because the use more. Simple as that. Personally I think that the large buisness, that make massive use of water should pay rather more than a small buisness that hardly uses any. I cannot see that water supply should be part of social services in this day and age.
Overall reduced consumption of water would not reduce Water Companies profits as claimed by Ray Walton. Water companies are not directly affected by the market (yet). They are entirely regulated. Their profits are linked to investment. They are able to earn a fixed percentage of overall investment as profit. So profit is linked to allowable investment and meeting of certain government set targets. If the target is reduced consumption, the water company can actually earn more money by investing in ways of selling us less water.
Not in my view the best way of managing things. But with any monopoly regulation is required. In order to get people to invest in that monopoly they must have an ability to earn some return.
We could, of course, re nationalise water and run it like a social service. Every one pays a little and then everyone takes a lot.
Overall reduced consumption of water would not reduce Water Companies profits as claimed by Ray Walton. Water companies are not directly affected by the market (yet). They are entirely regulated. Their profits are linked to investment. They are able to earn a fixed percentage of overall investment as profit. So profit is linked to allowable investment and meeting of certain government set targets. If the target is reduced consumption, the water company can actually earn more money by investing in ways of selling us less water.
Not in my view the best way of managing things. But with any monopoly regulation is required. In order to get people to invest in that monopoly they must have an ability to earn some return.
We could, of course, re nationalise water and run it like a social service. Every one pays a little and then everyone takes a lot.