Anglian Water bills rise: what are the key the challenges affecting improving water infrastructure?

The video discusses the significant investment in water companies since privatisation, noting that despite increased spending, environmental goals like clean beaches and rivers have not been met. This is due to agreed investment levels being lower than needed and water companies underinvesting by about 5%. Additionally, the financial model creates intergenerational challenges as current customers do not pay for today's investments, requiring companies to borrow or seek shareholder equity.

What challenges do water companies face in raising finance for investments?

Explain the intergenerational challenge faced by water companies regarding investment payback.