On its journey to the North Sea, the River Thames runs through Henley, a picturesque middle-class town about 35 miles west of London. The river is central to the town’s identity, known for its annual royal regatta and the first boat race between Oxford and Cambridge Universities.
However, the river, once a source of pride, has become a source of alarm. Laura Reineke, a Henley resident and founder of the local swimming group, the Henley Mermaids, noted that the water quality has deteriorated significantly in the past two years. She described the water as “murkier” and reported finding sanitary products, colostomy bags, and excrement marks on swans while swimming.
Nearby wastewater treatment plants operated by Thames Water, England’s largest water company, have been accused of discharging sewage into the river and local streams, prompting complaints from residents.
The issue is not isolated to Thames Water; the 10 water utilities in England and Wales, privatized in 1989, are facing public backlash over polluted waterways and rising household bills. Data from campaign groups indicate an increase in waterborne illnesses, with more than 1,900 people reporting illness after entering the water last year, nearly tripling the previous year's figures.
As public anger mounts, Henley has emerged as a focal point in the nationwide calls for the nationalization of water companies. District councilor Jo Robb criticized privatization as a “calamity” for the water industry.
Insufficient investment in sewage infrastructure has led to a crisis, with many blaming the ownership model of regional monopolies primarily held by multinational conglomerates. Critics argue that shareholders have received billions in dividends since privatization without adequately reinvesting in the water system.
In June, the Henley Town Council called for Thames Water's nationalization, citing the company’s concerning track record. Thames Water, which serves about 16 million people, is currently in financial distress, with debts of approximately £15 billion. Its shareholders, including a Canadian pension fund and Abu Dhabi’s sovereign wealth fund, have been hesitant to provide additional funding amid regulatory disputes.
Thames Water is also facing regulatory fines, including a record £104 million penalty from the Water Services Regulation Authority for environmental harm due to untreated wastewater spills.
The issue has intensified as more Britons have engaged with waterways post-pandemic, leading to increased scrutiny of sewage releases. Local citizen scientists, like Dave Wallace, are actively testing water quality in Henley.
Thames Water has announced plans to upgrade the Henley sewage center by the end of 2026 and has submitted a business plan to address aging infrastructure and growing demands.
While Thames Water exemplifies the crisis, dissatisfaction is felt nationwide, with regulators investigating water companies for improper sewage releases and financial mismanagement. The average utility bill in England and Wales is currently £441 annually, with proposals for a significant increase over the next five years.
Critics, including MP Clive Lewis, argue that the public recognizes when they are being overcharged and that the current system is failing. The privatization of water utilities under Margaret Thatcher has been criticized for transferring assets to companies with limited liability and accumulating substantial debt while paying out significant dividends.
Despite claims from water companies that shareholder payouts are not to blame for inadequate investment, there is a growing call for public ownership. A July poll indicated that over 80 percent of Britons support public sector management of water companies.
However, the British government opposes nationalization, citing the high costs and potential disruptions to investment. Secretary of State Steve Reed emphasized that nationalization would exacerbate sewage pollution and hinder necessary investment.
Disagreements persist regarding the financial implications of nationalization, with estimates suggesting costs could reach £99 billion. Given the current strain on public finances, significant changes to the ownership model appear unlikely, despite ongoing calls from activists and lawmakers for reform.