Dividends dished out by polluting water companies hit £1.4 billion in the year to the end of March 2022, figures compiled by The Financial Times show.
Analysis of the ten largest water and sewage companies’ accounts shows there have been eye-watering handouts to shareholders in recent years.
Complicated layered corporate structures allow firms to duck Ofwat regulations, meaning there is less money available for investment in critical infrastructure such as sewage treatment and water mains.
It means it is hard to trace exactly where the cash from water bills is going, says Sir Dieter Helm, professor of economic policy at Oxford University.
“These complex financial structures are not transparent or clear and have delivered no obvious benefits to customers.
“Water companies have been running rings around Ofwat for years.”
Recent analysis found almost a million hours worth of sewage discharges occurred across coastal constituencies last year.
The Labour Party has highlighted data from the Environment Agency (EA) which it says shows 141,777 sewage dumping events across 137 of a total of 139 coastal constituencies in England and Wales in 2022.
Campaigner Feargal Sharkey says the blame largely lies on the shoulders of water companies.
“Every single river in England is polluted, and one of the largest sources of that pollution is the water industry”, he said.
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