Water Boards

Seems the Water Boards are getting a lot of press but they always leave out the most interesting details.

Can anyone fill in the gaps ?

Who provides these £billions of loans to the Water Boards ?

Why has Ofwat , the FCA and Goverment allowed them to use such Loans to pay out these £Billions to the shareholders ?

With such large debts, why have they not been declared Insolvent by the Auditors and the Directors accused of malpractice ?

Expect its is going to be us who have to bail them out, but why ! just let them go bust and let their shareholders and lenders take the hit ! even if some of the pension companies get a toe burnt, not the end of the world for them.

 

I'm assuming the share holders will be selling.

This is the kind of thing that happens when you have ridiculously low interest rates.

 

It also does not help when the previous owners of Thames Water used them to secure a £2billion loan, with not a penny being reinvested in Thames Water.

Similar to Man Utd, how much have the current owners (Glazers) taken out of the club, leaving the club to fund the loans and interest.

Thames Water is huge compared to the other water companies, they have such a monopoly, no one else can compete with them, resulting in, they literally do as one pleases.

 

At least we do not have those problems in Scotland, as Scottish Water is nationalised, with no shareholders bleeding us dry.

 

FCA regulates the lenders not the borrowers.
Thames have also had £0.5 billion from shareholders in the past year and have asked, I believe for a further billion, shareholders are being slow in coughing this up. This money was raised by selling new shares to the existing investors.

 

Wonder what Maggie would say of her privatisation plans today, she made it sound so wonderful for us all !

 

Just been listening to Broadcasting House Radio 4 interview with select committee chairman re water companies: apparently they've had evidence that some water companies have been borrowing from their shareholders rather than the open market. Better rates might have been available on the open market also interest is paid out and set against profits thereby avoiding/reducing corporation tax bill.