Flowing towards injustice: 7 issues that arise when water is monetised
So, how much water did you use today?
Whether it’s showering, your morning coffee, or that avocado toast you had for breakfast, we use a lot of water, directly or indirectly. Around 140 liters on average in Europe per household. If that sounds like a lot, don’t worry, we’re not playing the blame game. It’s your human right to have access to safe water.
So then, the reality of 1 in 4 people without access to clean drinking water worldwide will make you just as upset as we are. And to make matters worse, the number of people experiencing water scarcity could rise to nearly half of the world’s population by 2025...
With those alarming numbers piling up, private companies spotted the chance to profit from the crisis. Might sound complicated, but to get a taste we don’t have to look far. Beverage producer Refresco was allowed to pump up 750 million liter of groundwater annually for their drinks (incl. water) in the Netherlands. For many, this raised concerns about the environmental effects, water scarcity and why on earth we are pumping up water to package it and sell it for profit in the first place (okay, that might be mainly us).
Fact is, water privatisation could affect us all. So, let’s go through 7 issues related to it and find out why the only way to the water is a publicly owned one.
And how that avocado toast you had is not only a symbol for a healthy diet, but also one for the importance of public water.
For many of us, water is easily accessible and astonishingly cheap (if you drink from the tap, that is). It doesn’t scream big business. Private water companies in the US thought the same and saw an opportunity. Their solution? Simply raising the prices for tap water by 59% on average. Easy money.
They treated a human right as just another product to sell and the consumer, you, pays the price.
If that doesn’t milk the cash-cow (your water tap) completely, there’s still packaged water. Every year, people spend $270 billion on water packaged in bottles, glass and cardboard boxes. This is toxic for the environment and your wallet alike. Did you know, we need less than half ($114 billion) to provide the global population with access to safe water??
95% of the Europeans can drink safely from the tap, ensured by the extremely strict quality controls on a public level. Now, private companies don’t have to report back to the public. They can keep their water quality checks private (if they do them in the first place).
Let's not assume anyone has evil intentions, but a look at the UK, where all water companies are privately owned, gives a hint. In 2022 alone, these private water companies paid a whopping 1.4 billion pounds in dividends to their investors. Meanwhile, England's public waterways are dealing with an average of 300,000 sewage spills every year.
This shows what can happen when profits are prioritised over regular controls and infrastructure investments. It leaves a troubling prospect of what water privatisation can look and taste like.
Water has become such a common component of our daily lives, that you might not even notice how often you turn on the tap. But as with anything, you only truly miss it once it’s gone. So, imagine the despair of Chileans when their water supply was cut off completely.
Chile turned its water into a commodity, allowing private corporations to snatch up rivers and reserves as they like. And guess what they’re after? One precious green gem: the avocado. Chile is famous for it. And to produce it, you need a lot of water. With high demand, the ones in charge of the water simply prioritise agriculture to keep them growing.
Leaving the citizens drying up like that avocado sitting in your fridge for the last two weeks.
It’s a stark reminder of how a vital resource is sold shamelessly, cutting people off from essential access.
Yes, agreed, Chile might be an extreme example. But European countries already suffer from water shortages. Thus, the question remains, who do you want to control your tap?
Everyone deserves a voice in water. Governments must ensure infrastructure for safe drinking water. If they don't, you hold a strong tool for change: your vote. But private ownership sidelines public control and the only ones being able to vote are the shareholders. Since everyone needs water, everyone should have a say on it.
And that’s possible. As seen in Paris, where water re-municipalisation led to benefits on multiple levels. After gaining back control over its water, Paris introduced a citizens’ commission to have a say in their water supply. The prices were cut down by 8 % and a policy for water affordability, especially in poorer areas, was put in place. And all that in a city where you’d expect people to prefer red wine over tap water.
You’re smart. You know that scarcity drives product prices. The packaged water companies know that too. So, water scarcity makes you tremble? Big corporations like Nestlé Waters stay cool. For them, it’s only another chance to quench their ever-growing thirst for profits. The company happily continued to pump up water in Vosges, France during a recent drought, while households were asked to limit water usage. But don’t they worry. In case they needed a refill, they could simply buy a nice bottle of Vittel. Sourced from their otherwise free groundwater. The additional 2 to 4 liters of water that was wasted to package that 1 liter? Forgotten in the rush for profit.
But crunching numbers doesn’t mix well with a human right like water, at least not if we want to keep it one.
It should be people over profit, tap water over packaged water.
But what if your government still decides to give privatisation a try, despite all these problems?
Maybe it works better? Maybe private corporations have more money to invest?
Well, “trying” isn’t really the right term. The companies and corporations often buy up the water supply for a long time. Once your water is privatised, giving it back to the public is tricky.
In France, where water is partly private, the trend goes towards re-municipalisation. Cities and towns reclaim their water supply. They have learned their lesson with private ownership. Often, they decreased water management and bought rights unlawfully. Remember what happened in Paris? Contracts with the private water companies were signed in the 1980s. It wasn’t until 2009 that the city managed to take back control. Not really a casual liaison.
The lure of privately owned water might be appealing. But once the contract is signed, it’s a long read back. Let's learn from the French.
Water isn’t endless. Even though our planet is blue, only 2.5% of it is fresh water. With temperatures rising, droughts happen more often, and our water reserves dry up.
Already a worrying sign.
Yet, this doesn’t seem to faze for-profit water companies. They treat aquifers like it’s happy hour. In their water rush they completely disregard the environmental havoc they wreak. In Auvergne, France, Volvic water is sourced. The subsidiary of Danone extracted 2.3 billion liters of water in 2020. This is drying up the surrounding region. Effects on the vegetation and biodiversity are huge. People around are witnessing a “desertification.” The company is pointing at global warming as the reason. But coincidentally, during pauses of pumping, resurgences in water stands can be measured. That should raise some eyebrows.
So, there you have it. 7 issues that arise when private corporations take control of public water. Scary, right? With its increasing scarcity, water is turning into the most important resource of the future. Private companies know that and are looking to profit from it. Suddenly, a human right turns profitable, and you pay a lot more for it. Never knowing exactly where your water is coming from and what might be in there. Resulting in over-extraction and an even drier future.
If we’re serious about keeping water affordable, accessible and safe for everyone, it is on us to keep profit-thirsty companies out of it.
Use your voice, be aware of new developments surrounding the topic, and of course, just refill. By drinking tap water, you don’t just exercise your human right, you also show that there is no need for overpriced packaged water. That’s the first step to end the monetisation of water.
Happy World Water Day 2024!