THE head of Jersey Water has mounted a staunch defence of the structure of the company, which is 74% owned by the States of Jersey.
Helier Smith said that having the government as Jersey Water’s majority shareholder provided stability and insulated it from many of the problems that had faced privately owned water utilities in the UK.
Answering a question about privatisation at the end of a speech to the Chamber of Commerce – where Mr Smith, who has been Chief Executive Officer of Jersey Water for that last ten years, had set out his company’s recently published 2030 Strategy – he said that the utility “needed to be doing what is right for the Island”.
He contrasted its position with some UK utilities, which “had fallen victim to the needs of [private] shareholders and a poor regulatory environment.”
However, he added that the remaining 26% of Jersey Water shares – which are held by 280 private shareholders – provided “distance and discipline” and “good governance”.
In the UK, several major utilities, including Thames Water, are saddled with huge debts, to the point that nationalisation is being considered.
The Labour Government is also creating a new powerful regulator for its water industry following public fury over sewage spills.
Jersey Water’s new 2026-2030 Strategy includes spending £48m to, among other things, increase the capacity at the desalination plant by 50%, extend the mains network and spend £2m on ways to treat PFAS.
It will initially be paid for by a 15.5% increase in water charges from January.
