I would far rather subsidise water (and sewerage) for poorer people, care homes, NHS providers, and schools (in fact to reduce bills for everyone in England) than, as is the case presently, 20% of my (all of our) water bills servicing the debt of water companies (average per bill according to the Competitions and Markets Authority).
Ofwat data shows that the water companies have debt of £53.9 billion, all run up since privatisation in 1989. At that point, the nationalised water board’s debts (of £5bn) were written off, and the new companies were given £1.5bn of public money.
The gearing for these debts is seriously problematic, with ratios of debt to capital value from 60% to more than 80%, according to Ofwat data, which makes the majority of water companies financially unstable - and which makes comparisons of ‘oh but £5bn in 1989 is now worth… ’ meaningless unless you can show the gearing for the water board then.
I particularly object to paying for the choices of overseas private equity companies (who own the majority of English water companies, many of whom do not pay tax in the UK ) who have, it appears, gone for this high level of debt to pay dividends (around £66 billion since privatisation), rather than to fund investment (analysis of this by University of Greenwich, SOAS et al ).