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News :: Civil & Human Rights : Economy : Environment : Political-Economy : Urban Development |
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Citizens Groups Challenge RWE with Demand to Buy Local Water Utilities |
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by via Food and Water Watch
(No verified email address) |
10 Apr 2006
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Illinois Mayor Travels to Berlin to Express Community’s Wish to Terminate Corporate Control of Its Water |
BERLIN, Germany - April 10 - Americans are tired of corporate control of their water utilities under multinational companies such as Germany’s RWE and want to assume local, democratic control after a dismal experience with privatization, said three groups today as they stepped up pressure on RWE to sell a portion of the water utilities it owns through its U.S. subsidiary American Water.
At a press conference preceding RWE’s annual meeting in Essen, Germany, representatives from three organizations in Germany and the United States, as well as the mayor of Urbana, Ill., urged the corporation to negotiate with communities who are interested in buying their own utilities at fair market value before proceeding with the company’s planned Initial Public Offering (IPO).
“Our experience in Illinois has taught us that we need local control of our water systems. Ownership by a giant conglomerate has led to boil orders, fire hydrants which cannot be opened when our firefighters rush to a fire, and perhaps most frightening, a huge interference in our local governments by RWE spending millions of dollars to influence our elections,” said Laurel Prussing, mayor of Urbana, Ill. “We are willing to pay a fair price, and we believe investors will benefit more from selling to us than by wasting money on a political war while neglecting much-needed maintenance.”
A joint statement by nine U.S. mayors was released today, urging RWE to consider their communities’ offer. To read the statement, go to http://www.foodandwaterwatch.org/water/corporate-control-1/rwe-1/official-statement_rwe.pdf/.
Water privatization has been under fire in the last year as one failed contract follows another across Latin America and the United States. RWE’s costly investment in Thames Water, which manages Britain’s water system, and American Water, the largest private water provider in the U.S., left the corporation ridden with debt and unable to satisfy its shareholders. Just three years after it took over American Water, it is now looking to sell the company So far, American Water executives have been unwilling to negotiate with U.S. communities who are interested in buying their water utilities.
“It’s time for RWE to be a good corporate citizen and make up for its past misbehavior,” said Victoria Kaplan, an organizer with Food & Water Watch. “CEO Harry Roels should do the right thing and listen to what our communities have to offer.”
Communities across the world say they are tired of privatized water because it has brought them higher rates, bad customer service, and a loss of public accountability. In the United States, cities such as Lexington, Ky., Urbana, Ill. and Monterey, Calif., have stepped up their demands about RWE in recent months as news articles surfaced about its decision to sell off its American water arm after a disappointing three years in the market.
RWE is also feeling the heat from people in its home country. Citizens of Berlin are demanding the return of the Berlin water works to the municipality and the publication of undisclosed contracts. Since RWE acquired a stake in Berlin’s water utility, rates have increased 25%, valuable property has been sold off, and preservation investments have been cut in half. Citizens in Mulheim, Germany are also organizing to reclaim their water works from RWE.
“Not only in the United States, but also in Berlin and Mulheim citizens are fighting for the termination of contracts with RWE,” said Jens Loewe of the Wasser in Bürgerhand (Water in Citizens’ Hands) network. “If American Water is brought to the stock exchange, then nearly no more democratic control exists for the citizens.” |
See also:
http://www.foodandwaterwatch.org
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