Morning:
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Comment: Water blockage
Evening Standard21 Jul 2008
The board of Thames Water is treating London with disdain, and rewarding itself on a lavish scale as it does so. As we report today, bonuses for directors have risen by almost 700 per cent following the sale of the monopoly water utility to the Australian private equity firm Macquarie. Meanwhile, Londoners affected by the vast programme of replacing the company's Victorian water mains believe Thames has failed to do as much as it should have in order to minimise disruption.
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.
