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Comment: Water blockage
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21 July 2008
No one is arguing about the need for the work. Losses through leaks would otherwise reach unsustainable levels. But Thames's roadworks are imposing huge costs on businesses in areas such as Soho, Westbourne Grove and Barnes, where months of road closure have crippled some retailers. The company should have a much better grip on what work is taking place when, so that traders and residents can find out in advance how they will be affected and for how long. Procedures for claiming compensation should be set out clearly.
This company is in a position of extraordinary power. No one in its region can receive water from any other supplier. It has an overwhelming obligation to behave responsibly. If it does not, Ofwat, the water regulator, must take that failure into account as it reviews the company's performance. Criticised by MPs last year for its slow reactions, Ofwat must look again at using its powers to levy fines. The spectacle of the new owners paying vast bonuses to the board while the capital's roads grind to a halt is infuriating Londoners. The Mayor has already promised to extract better performance from Thames. Both he and ministers now need to ensure that happens.
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