Thames Water - Financial Crisis Deepens

This story speaks of the flawed nature of water privatisation, a scandalous lack of regulatory oversight, and the horrific misalignment of incentives.

The Head of Thames Water, whose ownership structure is less than straightforward, has admitted that the company is struggling to payback a loan due to mature in April, and warned that the nationalisation of the company could cost the taxpayer millions.

Of course, he's not pointed out the fact that Thames - and other utilities - have consistently paid high executive salaries and bonuses, and also paid sizeable dividends to shareholders, all the while

Nils Pratley's column here on Thames Water argues that the company seem to be trying to hold the regulators, OFWAT, to ransom. However, I stand corrected, to some degree, about dividends, with the company not having paid a dividend for six years. That said, it strikes me that investors are looking for risk-free investment, and that's not the what being a shareholder is all about.