Alexander Rooney: Welsh Water’s dirty secret: profits up, standards own

Alexander Roooney is a Welsh Conservative working in Clwyd and North Wales

Welsh Water claims is different. No shareholders. Not-for-profit. Every penny, they say, is reinvested to serve the people of Wales.

But recently, North Wales lost its final Blue Flag beach.

Not a single stretch of coastline in the region now meets international water quality standards. That’s not the fault of the sea — it’s the result of repeated pollution failures, sewage overflows, and a water company that’s chosen to hoard cash rather than invest in the basics.

This isn’t just an environmental disgrace. It’s a direct threat to Wales’s coastal economy. Towns like Llandudno, Rhyl, and Conwy rely heavily on tourism. Blue Flag status draws visitors, supports small businesses, and gives local families pride in their coastline. Without it, we don’t just lose a flag, we risk losing millions in economic activity and the livelihoods that depend on it.

So, how did we get here?

Let’s start with this: over the past four years, Welsh Water’s CEO has received nearly £2.85 million in pay, while beaches, rivers, and homes across Wales have faced worsening conditions. The company now sits on £2.9 billion in reserves, yet consistently fails to upgrade the infrastructure those funds are supposed to support.

Burst pipes in the Conwy Valley. Overflowing drains in Swansea. Drinking water supplies are collapsing under pressure in the north. These aren’t isolated incidents but the direct result of long-term underinvestment. Welsh Water says fixing the system is too expensive. But what, exactly, are they saving for?

Bills are soaring. Households in Wales are already paying more than almost anywhere else in the UK — and by 2029, the average bill will hit £645 a year. That’s more than in London, Manchester, and any of the English cities that rely on water piped in from Welsh reservoirs.

We’re paying top prices for second-rate service — and footing the bill for failures that Welsh Water should have fixed years ago.

And where are the regulators? Ofwat and Natural Resources Wales have issued plenty of statements. They’ve sent letters, set targets, and made warnings. But the truth is, they’ve allowed this to go on for too long. While raw sewage poured into rivers, they held back. While drinking water supplies failed, they waited. While executive bonuses were signed off on year after year, they looked the other way.

This isn’t just about poor management. It’s about broken oversight.

Let’s be clear: the problem isn’t that Welsh Water holds reserves. Sensible financial planning is what we should expect from a national utility. But we’re no longer talking about prudence when £2.9 billion is sitting in the bank while pipes burst, beaches are lost, and bills climb higher. We’re talking about paralysis.

Welsh Water was founded on the principle of public good, not private profit. But that principle has drifted. The money’s there, the need is obvious, and the excuses have run out.

So, let’s ask the questions that matter:
Why are our bills the highest?
Why are our beaches no longer clean enough to earn a Blue Flag?
Why are cities in England paying less for fresh Welsh Water than we are here in Wales?
And who, exactly, is benefiting from this system, because it certainly isn’t the people of Wales.

This isn’t about politics. It’s about accountability. A water company created to serve the public now rewards failure, avoids investment, and treats customer complaints like background noise.

It’s time that changed.