England and Wales privatised their ten regional water authorities in 1989, writing off about £4.9bn of debt and adding a £1.5bn green dowry. Drinking water and…
Ten public regional water authorities took over water and sewerage in England and Wales, each covering a river basin.
Thatcher's government sold the ten businesses. It wrote off about £4.9bn of debt and added a £1.5bn green dowry.
With no competition, Ofwat set prices, the National Rivers Authority policed pollution and the DWI tested tap water.
Drinking water and beaches improved after big investment, but bills and profits rose fast until Ofwat ordered a cut.
Welsh Water has had no shareholders since 2001. Scotland and Northern Ireland never privatised.
Several owners borrowed heavily to fund deals and payouts. Sector debt passed £60bn.
The National Audit Office found companies made at least £800m of windfall gains that customers mostly did not share.
Serious incidents rose to 75. Thames, Southern and Yorkshire caused 81% of them.
Ofwat approved £104bn of spending for 2025-30, funded mostly by bills rising 36% before inflation.
Bills rose about £123 in April 2025, then another 5.4% in April 2026 to about £639.
Close to £20bn of debt. Courts approved a £3bn emergency loan; Ofwat fined it a record £122.7m.
The review called for a single regulator. Ministers agreed, and a January 2026 white paper set out the plan.
PM Andy Burnham promised to repeal the 'ban' on public ownership. No company has been taken over yet.
Shareholders lose first, then lenders. Customers and taxpayers carry what is left, depending on the route chosen.
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