UK NEWS
'DISGRACE' OF WATER FIRM'S £300M PROFIT
The army distributed water yesterday for those whose supplies had been cut
By Graham Hiscott, Consumer Journalist of the Year
FURIOUS flood victims last night attacked the company at the heart of the water crisis after it emerged that the firm is on course for a £300million profit this year.
With supplies to hundreds of thousands of households still cut off, Severn Trent Water was facing serious questions about whether it could have acted to prevent the misery.
In Tewkesbury, Gloucs, factory worker Tammy Grant, 29, said: “If Severn Trent are making that much money they could be doing a lot more.”
Ms Grant, who has two children aged six and eight, added: “We have been driving to Cheltenham to buy our own water because the bowsers are always empty. Some people are taking it all and nothing’s being done about it.”
Mother-of-two Emma Daglish, 28, said: “Maybe this is unprecedented in recent history but flooding is not unprecedented in this area. They can’t expect us to live like this.
“They should think about reducing their profits and pumping that money into flood defences.
“This could happen again every year for all we know. The money should be used for people whose homes have been damaged.”
The company is also accused of not having contingency plans to pump supplies in from alternative sources.
Officials from the Consumer Council for Water met Severn Trent bosses last night. Dame Yve Buckland, chair of the customer watchdog, said: “It is pretty unprecedented to have this size of population without a water supply predicted for such a long time.
“We have been asking why it needs to take that long and making sure they are pulling out all the stops. We have also asked why there was not a back-up supply.”
She revealed the watchdog’s helpline was receiving calls from disgruntled householders unable to get vital information from Severn Trent.
The council has previously criticised the company for the poor quality of its customer services.
Customers claim Severn Trent has left them in the dark about when normal supplies will resume.
More than 340,000 people face the prospect of two weeks without fresh water after the Mythe treatment works in Tewkesbury, which normally supplies 26million gallons a day, was engulfed by floods on Sunday.
There are concerns that Severn Trent did not do enough the protect the site.
Cheltenham MP Martin Horwood criticised Severn Trent after bowsers ran dry in the flood-struck neighbourhoods in his constituency.
He said: “Many organisations have come out of the crisis well – notably the emergency services, the military, local radio stations and many individual friends and neighbours who have looked out for the most vulnerable. But Severn Trent today looks like a weak link. The strong impression is that Severn Trent did not have well worked-out plans for how to source bowsers or where to deliver them in the event of a critical interruption to supply.
“I hope Severn Trent will now move heaven and earth to get Mythe pumping station back into service.”
Severn Trent defended its actions, claiming it had “pulled out all the stops”. A spokeswoman said: “We have drafted in as many people as we can and they have been working extra shifts to try to cope. We have an information line with recorded messages which is updated throughout the day and there is information on our website.”
The firm distributed four million bottles of water yesterday with plans for a further five million today.
In addition, 926 bowsers, each holding 2,500 litres, have been set up on streets.
The spokeswoman revealed there were finally plans to pump in extra water supplies, something critics said the firm should have done as soon as the crisis broke.
Last night emergency services were standing by in Bewdley, Worcs, amid fears that part of a waterlogged hillside would collapse and demolish six bungalows below it.
Residents were evacuated on Tuesday night. The bungalows stand between the Severn and the hill, known as Northwood Slip.
In Gloucester, the Red Cross spent yesterday distributing toiletries, sanitary items and bottled water by boat. Temporary defences set up to protect the town’s Walham electricity sub-station – which provides power for half a million homes – were holding firm.
A disaster fund set up for victims of the floods soared past £500,000 last night.
Money will primarily be given to local authorities in affected areas to help vulnerable people rebuild their lives, or to local charities chosen to undertake work on their behalf.
Margaret Lally, British Red Cross Director of UK Services, said: “The fund is needed because we know that in most communities there are vulnerable people who will need extra help to rebuild their lives after these devastating floods.”
SEVERN TRENT PROFITS
26.07.07, 8:59pm
As one of the unfortunate residents of Gloucester having been without water since last sunday I feel that Severn Trent should be MADE to give all it's profits to raising the height of the treatment plants AND electricity sub stations ..and also building flood barriers around these instalations. It really is obsene to be making a profit whilst vulnerable people are suffering so much . The elderly and the disabled AREN'T being looked after and being taken bottled water or food . Bowsers are being vandalised, urinated in, or left empty . The elderly and disabled have difficulty bending down to use the bowser taps and actually carrying vessels with water in home. Bottled water distribution points are usually in out of town supermarkets .......if you haven't got a car ,,,,,it's awkward, and to stand for hours in long queue's can be not an option. Asking for extra bottles for neighbours is not an option ....... you get a set amount of bottles per person turning up at the site.
Posted by: sandra Report Comment
WATER FIRMS
26.07.07, 6:44pm
\sorry but this is what you get in a totaly free market place, hope all those people are still happy to be in the E.U
It is time to renationaise the utilility by compulsion if that is what it takes
Posted by: syd Report Comment
STATUTORY OBLIGATION?
26.07.07, 5:55pm
Now let the discussion go a stage further.
Severn Trent have a statutory obligation to supply water to a given quality and given level of service. These tasks are rewarded by us in the form of Water Charges and Severn Trent Shareholders profit if the cost is less than the charges.
Because Severn Trent could not procure the appropriate tankers and enough HGV1 drivers when their Capital Expenditure programme failed to protect their vital assets they failed to meet their obligations without various public services and armed services involvement. They took a chance in the interests of profit instead of investing to ensure even emergency distribution of drinking water.
WHEN WILL SEVERN TRENT GET A BILL FROM EACH OF THOSE VITAL SERVICES WHICH THEY WERE OBLIGED TO CALL OUT DUE TO THEIR BOARD PAYING DIVIDENDS RATHER THAN PROVIDING FLOOD PROTECTION?
Before we are told that this is an exceptional occurence there have been floods practically every year in the flood plain at Gloucester and global warming is hardly a state secret even if it produces a one in sixty weather pattern this year.
WE ARE BEING CONNED.
Posted by: JohnY69 Report Comment
WATER PROFITS - OBSCENE.
26.07.07, 9:47am
JohnY69 you are dead right, you have said exactly what we all have been concerned about since that evil, vile Thatcher woman gave OUR water to her mates to buy cheap.
Nothing will happen to the water companies as they are too protected by the politicians who have the majority of shares, the biggest bundles.
They are untouchable.
Posted by: Robertz Report Comment
RE-ASSURE THE CITY FINANCIERS
26.07.07, 9:29am
Severn Trent have just assured the City that this years profits are safe following the bonanza of last year.
Maggie Thatchers privatisation always did mean that we got the water but they got the cream.
Now, even in this disaster, they still focus on the cream before they worry about the fact that we dont get the water.
Now watch the so called Regulator, paid to balance the public interest against the profit. It is a fair bet that all the Water Companies will demand massive extra capital expenditure and our charges will rise yet again to fund it.
Posted by: JohnY69 Report Comment
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