David Levy – The Water Industry and You – Jul 2026

Today is the 9th July 2026. The solution to the problems of under-investment in the water industry has been laid at your door. It is accompanied by increased annual household charges for a sub-standard service, and little protection that these charges are being invested into improving water services.
Marinet warned that this money would be seen by the industry’s owners as a windfall and, therefore, open to paying out as dividends for shareholders. This scenario has come true.
Severn Trent Water Company has raised water service charges to customers for 2026-2027 by 10%. Also, it has just revealed in its own annual report that the dividend paid to shareholders has risen by 3.5% and that the company’s annual profit also went up by 64%. They had to reveal these facts in their annual report as they are listed on the Stock Exchange, see the report. Most other water companies are no longer registered on the Stock Exchange, and we can only speculate whether their increased incomes are being distributed in a similar manner.
Where are the protections promised by OFWAT?
Do we know whether Severn Trent Water invested all of the 10% water rate rise in improved services and in new infrastructure to stop discharges of raw and poorly treated sewage? Is a 64% rise in annual profit and a 3.5% rise in dividends merely a coincidence?
Once again, no sign of any control promised to us over how this industry performs and uses our money. And, once again, the ship of investment funds that own our water companies are not being investigated or rocked.
Truthfully, Government will never examine the industry and its owners properly with an eye for reform. It’s too fragile an issue.
There are two things I wish to say about this, because the Government will not wish to.
1. There is simply no credible plan for the improvements needed to make this industry fit for the 21st Century.
2. Unless the public take issue with the fact that we are being made to pay for the infrastructure improvements, and insist instead that it is the owners who should pay, the increased money from annual service charges will continue to disappear into dividend pay-outs, and nothing will improve.
People in revolt is the only power that can solve this situation, in my opinion.
David Levy, Marinet Chair.