The authorities mentioned it’s ready for a variety of eventualities amid fears Britain’s largest water firm may collapse.
Sky News has learnt that ministers and Ofwat, the business regulator, have began to carry discussions about the potential of inserting indebted Thames Water into non permanent public possession.
Contingency plans are being drawn up amid rising doubts in Whitehall in regards to the capacity of the agency to service its £14bn debt-pile.
A authorities spokesperson mentioned that the debt “is a matter for the company and its shareholders”.
But they added: “We put together for a variety of eventualities throughout our regulated industries – together with water – as any accountable authorities would.
“The sector as a whole is financially resilient. Ofwat continues to monitor the financial position of all the key water and wastewater companies.”
Earlier, Sky News revealed the federal government is discussing inserting Thames Water right into a particular administration regime (SAR) that might successfully take the corporate into non permanent public possession, within the occasion of its collapse.
Such an insolvency course of was used when the vitality provider Bulb collapsed in 2021, sparking considerations that it may price taxpayers billions of kilos.
The talks inside Whitehall, which contain the Department for Environment, Food and Rural Affairs (DEFRA), Ofwat and the Treasury, stay at a preliminary stage and relate in the meanwhile solely to contingency plans which can not have to be activated.
Taking Thames Water into non permanent public possession would inevitably gasoline calls from critics of the privatised water business to renationalise the entire nation’s main water corporations.
Thames Water serves 15 million prospects throughout London and the southeast of England and has come underneath intense strain lately due to its poor report on leaks, sewage contamination, government pay and shareholder dividends.
On Tuesday its chief government, Sarah Bentley resigned with speedy impact after criticism of her £1.6m pay packet and the corporate’s environmental efficiency.
Content Source: information.sky.com