I always think that sewage discharges are a bit of a red herring. Obviously, they aren't nice - but truth is they are so biodegradable that three weeks after the discharge you wouldn't know it had happened. On the other hand, all of the microplastics we release in to the water... all of the hormones that modify physiomorphology of aquatic species... all of that goes uncommented on. We've had a 30 year + case study in the UK of the effects of public vs private ownership, as (per a previous poster) water in Scotland was never privatised. I'm not sure there is a clear case for one or the other (both operate in the same regulatory environment - it's that which needs to change - interestingly, Brexit gave us the chance to change it. Will we? (no)).
Disclosure: Worked as a microbiologist / chemist at sewage treatment works, donkey's years ago. Including testing storm discharges.