Southern Water

[Clitheroekid]

I've just been reading about the disgraceful conduct of Southern Water in knowingly allowing gross pollution to take place and then covering it up - https://www.bbc.co.uk/news/business-48755329

So they get fined £3m and have to refund their customers £123m over five years.

In the meantime, Southern Water's current chief executive, Ian McAulay, receives £1.1m in his pay package.

What's the point of fining these utility companies, or forcing them to pay a rebate? All they will do is raise their prices to cover it, and if they aren't allowed to do that they will simply get the money back by reducing their spending on the very improvements they need in order to avoid such incidents happening again.

There need to be hefty fines or even jail terms imposed on individuals within the company before there's likely to be any change in the toxic culture of such companies.

[Alaric]

All they will do is raise their prices to cover it, and if they aren't allowed to do that they will simply get the money back by reducing their spending on the very improvements they need in order to avoid such incidents happening again.

It's privately owned and you might hope it would impinge on dividend returns to the investors. But that may not happen and you wouldn't find out if it did.

Accountability is arguably where privatisation hasn't worked so well. If it was still in the public sector there would be an embarrassed Minister or two, whilst if still in the quoted private sector, public AGMs could be holding Boards of Directors to account.

[Dod101]

Presumably they have to publish or at least file accounts, even as a private company. Surely the way to punish them is for the CEO to be fined personally, or remove the franchise from the company and get other investors in to run it.

Maybe require these utilities to be PLCs, or heaven forbid, nationalise it. Where is Corbyn when we need him?

Dod

[PinkDalek]

Presumably they have to publish or at least file accounts, even as a private company. ...

Purely for fun, I've tracked the Persons with significant control at Companies House but the chain ends up here:

https://www.jerseyfsc.org/registry/docu ... ?Id=125134

Greensands Holdings Limited being the immediate parent, ultimate parent and controlling company of Greensands Europe Limited.

Greensands Europe Limited would appear to be the ultimate UK parent.

Greensands Holdings Limited is the only company that prepares consolidated financial statements.

Copies may be obtained from the Co Sec in Worthing but may be here https://www.southernwater.co.uk/media/2 ... -17-18.pdf

Greensands Holdings Limited is itself owned and controlled by a consortium of investors. At March 2018, the majority shareholder in Greensands Holdings Limited is an institutional investment company advised by J.P. Morgan Asset Management.

Source for some of the above extracts: https://beta.companieshouse.gov.uk/comp ... ng-history

[scotia]

ScottishPower bought Southern Water in 1996, beating off a rival bid from Southern Electric. I recollect visiting Southern Water HQ after that purchase, and noted that the ladies in reception were now tartan clad! But by 2001 Scottish Power wanted out, and it managed to offload the business in 2002 to First Aqua, a company specially formed to buy the business. In 2003 it was bought from First Aqua by a holding company 80.1% owned by the Royal Bank of Scotland, and 19.9% by the French company Vivendi. Then in 2007 RBS sold out to the Greensands consortium of infrastructure investors and pension funds - advised by JP Morgan. In all of these shenanigans, who was keeping an eye on what was happening at Southern Water?

[terminal7]

. . . and the financial fees charged by the usual suspects for all the 'advice' during the series of t/o's would be at least 8 figures. Anyone hazard a guess?

T7

[scotia]

. . . and the financial fees charged by the usual suspects for all the 'advice' during the series of t/o's would be at least 8 figures. Anyone hazard a guess?
T7

And I would hazard another guess - that the advisors hadn't a clue as to the technical aspects of the business.