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Water Utilities under more pressure to fix leaks and reduce dividend payouts

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richfool
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Water Utilities under more pressure to fix leaks and reduce dividend payouts

#154081

Postby richfool » July 22nd, 2018, 10:58 am

Fury at United Utilities as it pays £180m dividend: Experts say plug the leaks before rewarding your City investors

Water companies have come under fire for putting shareholders above customers by paying out too much in dividends and not investing enough to reduce leakages, which could avoid the need for hosepipe bans in the first place.

The nine major water utilities made £18.8 billion in post-tax profits in the decade to 2016, but paid out almost all of that – £18.1 billion – in dividends.

United Utilities – headed by chief executive Steve Mogford – hopes the hosepipe ban will save 22 million gallons of water daily. However, more than four times that volume is lost to leaks each day in the area covered by the company, figures from water regulator Ofwat show.

Professor David Hall, a water industry expert at the University of Greenwich, said water companies should pay out less in dividends and instead use the money to cut leaks by improving their infrastructure. 'The money is available,' he said. 'But it's not reaching the right places – which are the leaks. It's reaching the wrong places – which are the pockets of shareholders.'


http://www.dailymail.co.uk/money/news/a ... stors.html

midnightcatprowl
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Re: Water Utilities under more pressure to fix leaks and reduce dividend payouts

#154157

Postby midnightcatprowl » July 22nd, 2018, 3:59 pm

Oh yes, you can say that again. And of course it isn't just the pockets of shareholders but the pockets of senior executives who are not going their jobs or who perhaps are yet to be made to realise just exactly what their job is!

N.B. I'm in no way against people being asked to use water with wisdom and consideration for the environment and I try to do so myself but I do get mad at slogans such as 'Save Every Drop' when it is water I'm paying for (I've got a meter) while water companies completely fail to do their side of the job.

odysseus2000
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Re: Water Utilities under more pressure to fix leaks and reduce dividend payouts

#154172

Postby odysseus2000 » July 22nd, 2018, 5:45 pm

One can expect to see very many similar stories as we slowly move towards the next election.

Whether the case is or is not justified we are now entering a concerted & organised attempt to push utility prices downwards & to pave the way for re-nationalisation.

One can make the case that the utilities have behaved so badly that they need public control, but the real issue is between State run & private run & I think it almost certain that the media & especially social media will be used extensively to promote these two agenda with share prices reflecting opinion polls as to who is likely to get elected.

Of course there have always been these kind of news paper campaigns, but the advent of social media is a game changer in terms of the ability of small groups to influence voting intentions & thence share prices.

Regards,

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Re: Water Utilities under more pressure to fix leaks and reduce dividend payouts

#154323

Postby absolutezero » July 23rd, 2018, 11:07 am

I sold all my shares in NG, SSE, UU, SVT and RMG because I am convinced sentiment will continue to drift downwards, profits and dividends will fall and they will eventually be nationalised.
Same for any public transport companies like FGP etc.

I am also fairly sure Labour WILL win the next election and your shares WILL be confiscated or compulsorily bought below fair value.
They will do this by making the share price fall and fall by making noises about re-nationalisation then when your shares are all 10p, they will forcibly buy them off you.
What do you mean you paid 7 quid? You filthy capitalist. It's what you deserve! You're lucky to get 10p!

Anyone investing in anything with obvious Socialist political ideology problems needs their head examining in my view.

Dod101
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Re: Water Utilities under more pressure to fix leaks and reduce dividend payouts

#154343

Postby Dod101 » July 23rd, 2018, 11:59 am

I agree with absolutezero but so far have sold only most of my SSE shares. I think the shares in my only other utility National Grid, whilst an obvious candidate for nationalisation, will be more difficult to nationalise because of the US exposure.

Whether of course Corbyn et al get a sufficient mandate is something else.

Dod

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Re: Water Utilities under more pressure to fix leaks and reduce dividend payouts

#154438

Postby absolutezero » July 23rd, 2018, 4:02 pm

Dod101 wrote:I agree with absolutezero but so far have sold only most of my SSE shares. I think the shares in my only other utility National Grid, whilst an obvious candidate for nationalisation, will be more difficult to nationalise because of the US exposure.

Whether of course Corbyn et al get a sufficient mandate is something else.

Dod

People are fed up of the blue ones (with good reason I think) so now the red ones will get a turn.
And these ones are redder than any other red ones before them.

When something like 60% of blue voters think utilities should be in 'public' (state) control then the writing is on the wall.

The reds have told you they will take your shares. The questions is, do you just let them or do you get rid quick enough?


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