South West Water's half-baked plan won't cool nationalisation fever | Nils Pratley

Utilities company’s plan to give customers free shares equates to only £25 per household

One can guess at how the thinking went in the boardroom at Pennon, owner of South West Water. The Labour party is threatening to nationalise the water industry, so let’s try to defuse some tension by giving customers free shares. We’ll call it “a new deal” and talk about “empowering” people.

Up to a point, one can understand the idea to do something eye-catching. The shadow chancellor, John McDonnell, has yet to explain how he would pay for his plans, or which of the many versions of public ownership he prefers (two big oversights), but he has definitely tapped into resentment with the current privatised model in England and Wales. Water companies know they are seen as greedy and unaccountable. It is why, as they unveiled their business plans for the next five-year regulatory period, many announced various “partnership” ideas that were nods to the nationalisation debate.

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from The Guardian https://ift.tt/2NaGPUS