Was Corbyn right about water?
“Rail, mail, water, energy and fibre broadband”: Jeremy Corbyn’s proposed nationalisation plans weren’t catchy enough to win him a general election. But was he right to suggest some British companies should come back into public ownership?
The cloud of regulation looms large over the UK’s listed water companies. Severn Trent (LON: SVT), United Utilities (LON: UU) and Pennon (LON: PNN) enjoyed just three days of breathing space as the threat of a Corbyn-led government dissipated on 13 December, before regulation reared its ugly head again. On 16 December, Ofwat hit the companies with its toughest profit clampdown for 30 years. The regulator is hitting back after several years of underinvestment, which they say has been the cause of frequent leaks and contamination. Under the new profit cap, water companies must cut average customer bills by £50…