Let’s take a look.

First, English law doesn’t require compensation for nationalisation unless expressly provided for. And even then, there’s no obligation for it to be based on market value. Moody’s, a leading credit ratings agency, confirmed that compensation lies within Parliament’s discretion. The European Court of Human Rights also supports this.

There’s precedent. Labour and Conservative governments have previously nationalised industries without paying “market value.” Examples:

2023 Energy Act: The Conservative government allows for nationalisation with compensation determined by negotiation or arbitration—not market value.

2008: The Labour government nationalised Northern Rock after the financial crisis. Compensation? Zero. UK courts and the European Court of Human Rights upheld this.

2002: Labour nationalised Railtrack, paying just £500 million for the entire UK rail network. Again, the courts found this compensation to be perfectly reasonable.

The £90–100 billion estimate as the cost of renationalisation pushed by water companies is very likely bogus.

Even a privatisation advocate, Prof. Dieter Helm called it “economically illiterate” and said the assertion came from “a very poor and superficial paper.”

The actual cost of nationalisation could be much lower.

The shareholders’ capital in water companies totals just £3.4 billion—far less than in 1990. And don’t forget the £6.7 billion they’ve already received in state subsidies.

Glas Cymru—a not-for-profit water company in Wales—has no shareholders. It could be nationalised without compensation.

The idea that public ownership will cost billions looks like a smokescreen by private companies to protect their ownership. History and legal precedent show that bringing water back into public ownership at minimal cost could be possible. Clean water is a public good—not a profit machine. The public shouldn’t be held hostage by inflated compensation demands.