Alternative ownership models for water companies that stop short of nationalisation are within scope of the Cunliffe Review, water minister Emma Hardy confirmed last week.
She was discussing a new clause 28 for the Water (Special Measures) Bill proposed by Liberal Democrat MP Charlie Maynard, which would require the secretary of state to commission an independent review of the potential merits of changing the law so that a water company exiting a special administration regime becomes a company mutually owned by its customers.
Hardy said such a clause was unnecessary, as there is “nothing to prevent the company, or parts of it, from being transferred as a going concern to mutual ownership by a company’s customers, should the special administrator deem that appropriate”.
Maynard’s fellow Lib Dem Tim Farron pressed: “By talking about mutuals being a potential outcome, is the minister saying that what is actually off the table is full-scale nationalisation, but that mutualisation, public benefit companies and not-for-profit companies could be a serious option in the Cunliffe review and in whatever legislation might follow?”
Hardy replied: “Yes. We have ruled out nationalisation, but all other forms of ownership are in the scope of the Cunliffe review. I stress, however, that in a scenario in which a company was exiting special administration, it could go into mutual ownership if the organisation in question had sufficient funds and could ensure that the company, or parts of it, could continue to properly carry out its activities related to water.”
Clause 28 was voted down.
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