A troubled water utility company in the United Kingdom that counts two of Canada’s biggest public pensions as large shareholders is facing regulatory scrutiny and fines for sewage leaks and could require a financial bailout. The Ontario Municipal Employees Retirement System (OMERS) and British Columbia Investment Management Corporation (BCI) own 31.8 per cent and and 8.7 per cent of Thames Water, respectively. Analysts at DBRS Morningstar said in a July 5 report that OMERS and BCI are expected to weather the storm with minimal financial damage given their size, diversification and long-term performance — even if Thames Water were to collapse — but there is reputational risk for the Canadian pensions, which could affect future investment opportunities.
Hamilton exploring relief programs as unpaid water bills soar
The City of Hamilton is examining the possibility of new relief or rebate programs to help low-income residents amidst a surge in the number of unpaid water bills. Senior policy advisor John Savoie says such arrears have soared in Hamilton in recent years, reaching 20,000 accounts last year with total unpaid amounts hitting $4.4 million. “Unpaid after 60 days, it gets transferred to the property’s tax roll,” said Savoie. “We have seen over the last five years or so, the number and the value of those tax roll transfers have more than doubled.” Savoie added that 90 per cent of last year’s unpaid water bills were residential.