3.3 - 1945 to Privatisation

1945 to Privatisation

The Water Industry

After the war, there was an increased awareness of the need for national planning and coordinated efforts to address water supply, sanitation, and public health issues. This led to further developments in the post-war period.

Let’s hop into a time machine and transport ourselves way back to 1945 and see how the landscape of the water industry changed up until privatisation in 1991.

1980

Water under Margaret Thatcher

1989

1991

Regulatory Framework For Privatised Water Industry Established

1960s-1970s

Modernisation and Regionalisation

1985

1989-1991

Full privatisation

1994

Privatisation in Scotland

1945 to Privatisation

The Water Industry

1945-1948

Post-War Nationalisation and Reconstruction

A New Water Act

Greater Financial Independence for Water Companies

After World War II, the Labour government, led by Clement Attlee, nationalised key industries, including the water industry, under the Water Act 1945. This led to the formation of regional water authorities responsible for water supply and sanitation.

• 1963: The Water Resources Act aimed to address water resource management, encouraging regional planning for water supply and ensuring sustainable water use.
• 1973: The Water Act 1973 reorganised the structure of water authorities, bringing together water supply and wastewater functions at the regional level.

The Conservative Government, under Prime Minister Margaret Thatcher, introduced the Water Act 1980. This marked a significant step towards decentralisation and the separation of water supply and wastewater functions.

Water authorities were given greater financial independence, preparing the groundwork for eventual privatisation.

The Water Act 1986 laid the foundation for the privatisation of the water industry. The Act created ten regional water and sewerage companies in England and Wales, transforming them into private entities.

The process of privatisation was completed with the sale of shares in the newly formed water companies to the public. This marked the transfer of ownership from the government to private investors.

The Water Industry Act 1991 established the regulatory framework for the privatised water industry. The regulatory body, initially the National Rivers Authority (NRA) and later the Environment Agency, was tasked with overseeing environmental aspects.

The water industry in Scotland was privatised separately under the Water (Scotland) Act 1980.