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Thames Water nationalisation prep 'stepped up', says government | Thames Water nationalisation prep 'stepped up', says government |
(about 1 hour later) | |
A potential Thames Water investor pulled out of a deal earlier this month | A potential Thames Water investor pulled out of a deal earlier this month |
The government has "stepped up" preparations for the potential temporary nationalisation of Thames Water, the environment secretary has said. | The government has "stepped up" preparations for the potential temporary nationalisation of Thames Water, the environment secretary has said. |
Speaking in Parliament on Thursday, Steve Reed said the government "stand ready for all eventualities" - including placing the embattled water company under its control "if that were to become necessary". | Speaking in Parliament on Thursday, Steve Reed said the government "stand ready for all eventualities" - including placing the embattled water company under its control "if that were to become necessary". |
Earlier this month, Thames Water faced a major blow in its attempt to secure its future after US private equity giant KKR pulled out of a £4bn rescue deal for the company. | Earlier this month, Thames Water faced a major blow in its attempt to secure its future after US private equity giant KKR pulled out of a £4bn rescue deal for the company. |
Leonie Dubois, from the water company, said it was "working hard to get the company on a much firmer financial footing". | Leonie Dubois, from the water company, said it was "working hard to get the company on a much firmer financial footing". |
Answering a question from the Labour MP for Monmouthshire, Catherine Fookes, Reed said Thames Water "remains financially stable" and that the government had "stepped up" its preparations for potential nationalisation. | Answering a question from the Labour MP for Monmouthshire, Catherine Fookes, Reed said Thames Water "remains financially stable" and that the government had "stepped up" its preparations for potential nationalisation. |
"The government will always act in the national interest on these issues," he added. | "The government will always act in the national interest on these issues," he added. |
'Business as usual' | 'Business as usual' |
Thames Water serves about a quarter of the UK's population, mostly across parts of southern England and London, and employs 8,000 people. | Thames Water serves about a quarter of the UK's population, mostly across parts of southern England and London, and employs 8,000 people. |
But it has huge debts and is struggling to fix leaks, stop sewage spills, and modernise outdated infrastructure. | But it has huge debts and is struggling to fix leaks, stop sewage spills, and modernise outdated infrastructure. |
In May, the water company's chief told MPs that its survival depended on the industry regulator Ofwat being lenient over fines and penalties for its environmental failings. | In May, the water company's chief told MPs that its survival depended on the industry regulator Ofwat being lenient over fines and penalties for its environmental failings. |
The BBC understands that KKR pulled out of its deal to invest in the firm in part due to the political and regulatory risk surrounding the firm. | The BBC understands that KKR pulled out of its deal to invest in the firm in part due to the political and regulatory risk surrounding the firm. |
But speaking on Thursday, Mr Reed said: "Thames Water must meet its statutory and regulatory obligations to its customers and to the environment - it is only right that the company is subject to the same consequences as any other water company." | |
When asked about the firm being placed into government-supervised administration, Ms Dubois said: "We're getting on with the business of serving customers with water and treating their sewage, so it's business as usual for us." | When asked about the firm being placed into government-supervised administration, Ms Dubois said: "We're getting on with the business of serving customers with water and treating their sewage, so it's business as usual for us." |
"We're working hard to get the company on a much firmer financial footing and we're just getting on with the day job," she said. | "We're working hard to get the company on a much firmer financial footing and we're just getting on with the day job," she said. |
In a statement, Thames Water added: "Our focus remains on a holistic and fundamental recapitalisation, delivering a market-led solution which includes targeting investment grade credit ratings." | In a statement, Thames Water added: "Our focus remains on a holistic and fundamental recapitalisation, delivering a market-led solution which includes targeting investment grade credit ratings." |
Regardless of who owns Thames Water, its water services will continue as normal. | Regardless of who owns Thames Water, its water services will continue as normal. |
Thames Water is effectively owned by its lenders and a consortium of them has prepared a plan to raise equity which sources say is ready to go and fully funded. | Thames Water is effectively owned by its lenders and a consortium of them has prepared a plan to raise equity which sources say is ready to go and fully funded. |
The Thames Water Creditor Group have submitted to Ofwat a £17bn plan for the recapitalisation of the water company. | The Thames Water Creditor Group have submitted to Ofwat a £17bn plan for the recapitalisation of the water company. |
A spokesperson for the creditors said: "Broad regulatory support is needed to unlock a market-led solution for Thames Water that will secure billions of pounds in fresh investment for its ageing network, allowing a world class leadership team to start the intensive turnaround and deliver better outcomes for customers and the environment." | |
They added the group was "committed to working with the government and regulators to agree a pragmatic plan that recognises what Thames Water can realistically deliver". | |
You can follow BBC Oxfordshire on Facebook, X (Twitter), or Instagram. | You can follow BBC Oxfordshire on Facebook, X (Twitter), or Instagram. |
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