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Soaking the Customer: Private Companies Infiltrate the Water Market, We're Getting the Raw Deal
Ruby Williams, a 78-year-old Aqua Pennsylvania customer, got stuck with a $40,000 water bill because of a serious leak in the pipes under her home in Bristol Township, Pennsylvania. After her situation garnered national media attention, the private company agreed to reduce her bill to a few hundred dollars.
(ILRI / Flickr)
Likewise, the Price family of Stallings, North Carolina recently had their sewage service cut off by Aqua North Carolina despite having paid an overdue bill. The company demanded $1,000 to restore it — hundreds of dollars more than the actual cost to do the work. Again, thanks to bad publicity and public outrage, Aqua backed down.
It's not just American consumers that feel the pinch as our municipal water systems change from public to private hands — and it's not just that Aqua America is one bad actor, either. Private interests worldwide increasingly control our water. Too often, customers are getting a raw deal.
Nestlé, Veolia, and Suez Environnement are just a few of the multinational corporations that either provide water services to our homes, bottle our communities' spring water, or otherwise control the vast amounts of water needed to power our industries. All of us, like Ruby Williams and the Price family, will pay the price — unless we stop allowing them to turn our water into a commodity that they can exploit, and instead force our governments to do their jobs and protect our water resources.
Many economists, market-oriented environmentalists, and think tanks say we should let the market decide when it comes to water provision. They say that the higher the market value of water becomes, the more likely it is that people will use it wisely. That's a thorny proposition for a public resource that has no substitution and that is essential for human life. As consumers have seen, market forces can create untenable burdens by driving up water rates.
At the most extreme, companies cornering the water market will price out the poor. As the planet's population (7 billion and counting) and industrial development increases, entire freshwater lakes disappear, groundwater resources are drawn down, and technologies — including chemicals used in fossil fuel extraction — pollute water supplies. It doesn't take a brilliant economist to recognize that water will become more valuable. That means the companies that control it will become richer. Nearly 1 billion people worldwide already lack access to clean water and sanitation. Their numbers will increase.
It's wrong to let the private sector drive water policy. But it’s already beginning to happen. This trend will be on full display in France at the World Water Forum, which begins March 12. Many of the same companies that increasingly control our water will be holding a corporate trade show disguised as a multi-stakeholder forum to create solutions for providing water to the world's poor. Letting the private sector take the lead on these efforts is like letting the fox guard the henhouse.
After all, as consumers time and time again have experienced, corporations in the water business are accountable primarily to their shareholders, not the people they serve or the localities in which they operate. Conversely, public officials can be voted out if their constituents don't like the services rendered.
All people deserve access to an adequate supply of clean water. Profits reaped from water services should be reinvested in the local community, not pocketed by shareholders half a world away. It's in the public interest.
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13 Comments so far
Show AllPrior to the collapse of Enron a decade ago a Wall Street Journal article detailed how Enron was planning to corner the water market in the US and abroad as soon as they made more progress in manipulating the US electricity market.
Since only one of the Enron swindlers went to jail, the rest of them are scattered throughout the financial services industry working toward controlling water rights, water supplies and distribution in the US and abroad.
Here in Michigan we thank Jennifer Granholm, former Democrat Governor of Michigan, for signing off on the Nestle deal for public water now bottled. Terrible.
This “quantification” is the way they are packaging it- doing business to outdo years of legalities of water as a public trust. PUBLIC water. So bad politicians make deals to sell out the public and the public then has to pay. Look out Great Lakes.. now Michigan has Snyder who doesn’t mind drilling and taking over communities with an emergency manager. Bad deals for Michigan citizens all the way around.
Ventura had Nestle on his CT show. Nestle is ?Swedish, but definately not US corp.
So they take OUR water and sell it back to us. And people buy it.
Privatization is coming to everything near you soon.
This is part of the NWO many derided us as CT nuts.
Chicago sold their toll roads to a Saudi company, parking meters to banks.
We used to joke how foriegn companies would one day buy the US.
That day is here and our crooked politicians are letting them.
Makes sense. First we stole the land from the Natives and now we are selling it.
We will no longer need to sing all those Patriotic songs, like this land is our land, or god bless america.
Funny. If it wasn't so damn sad.
Nestlé is technically a Swiss company, but really they are a multi-national with no allegiance to any nation...
Does it make water privatization worse because the company is not "American"? Would it be ok if it was say Procter and Gamble?
I agree with sadness for our nation.
Water---the new gold to be extracted from us.
Well said. Nationalise the bastards.Denial of access to clean water contravenes the UN Human Rights Charter.
Well. The UN attempted to have access to water defined as a basic human right... but was killed by Harper and his gang of thugs. A Shameful day for Canada. They used the excuse that if water became a human right, then Canada would be obligated to bulk-ship massive quantities of fresh water to developing nations... meanwhile, our sources of fresh water are under threat by pollution. As well, there's been talks for many years under the guise of "Free Trade" of creating bulk water shipments to the US.
YEP! Government so small it can fit in your uterus.
Clever remark, Claudia. Bet that adage could work as a bumper sticker. Imagine if you pull into a redneck, right-wing favored location's parking lot with THAT one riding on your bumper... almost makes you want to carry a concealed weapon in visualizing the fallout, i.e. possibilities.
"corporations in the water business are accountable primarily to their shareholders"
ALL corporations are accountable primarily to the shareholders. Period. End of Story. There is nothing altruistic about corporations. They are designed to extract wealth and resources on behalf of a small group of people (shareholders).
Privatizing a municipal water system is completely insane. WATER is public commons. It's a necessary part of life. Are we going to trust that to some corporation? INSANITY! What's next? These corporations suing people who collect rainwater? Dig a well on your property and you have to pay royalties to the aquifer "owner".
I get charging a "fee" for water delivery systems that bring the water to your house. But charging for the water itself? That's just wrong. It's not like the companies manufacture the water out of whole cloth. But because some dumb f*ck politician signed away the municipality's water rights, the people suffer and are ripped off... yet again.
water, air, land, seeds, animals and humans only belong to nature (life). no private entity will ever really manage to own them. yes, they will try, they will invest billions and trillions to succeed, they will fight brutal wars, they will destroy rather than maintain, ...but they will not own them. it seems to have become a habit: cutting the branch one is sitting on.
Yes. Bloody fools. Who here has attempted to have a freshwater well drilled that is not attached to/dependent on electricity on their property? Watch the laws form to prevent you from doing this to get at your own water from the aquifer.
"...create solutions for providing water to the world's poor." Bullshit.
These soulless corporate vultures will be SELLING water to those who can afford it (if only barely), and as for those who can't - tough shitsky, go thirsty.
OCCUPY! OCCUPY! OCCUPY!