Thames Water has appointed trade veteran Sir Adrian Montague as chairman because the troubled utility supplier seeks to shore up public and investor confidence.
The former chairman of Anglian Water and insurance coverage large Aviva, Sir Adrian will substitute present chairman Ian Marchant, who introduced in April that he would stand down on the finish of this month.
His appointment, first reported by The Times, comes simply days after chief govt Sarah Bentley stood down with out rationalization this week, leaving a management vacuum on the firm and heightening considerations about its viability.
Following Ms Bentley’s departure Sky News revealed that ministers and water regulator Ofwat have been contemplating contingency plans within the occasion of the corporate collapsing, together with successfully taking it into state management by way of a particular administration regime.
Sir Adrian stated: “It is a privilege to join the Board of Thames Water and follow Ian as chairman.
“I very a lot loved my earlier position within the water trade and am happy to be re-joining the sector at a essential time given the challenges it at the moment faces.
“I now look forward to working with the Board and Executive team and Thames Water’s regulators and investors, to focus on the company’s turnaround plan and its future financing needs to ensure it delivers on its responsibilities to serve its customers and communities well and benefit the environment.”
Sir Adrian, 75, has expertise tackling the implications of earlier failed privatisations, having been appointed chairman of British Energy following a monetary disaster on the nuclear operator, and deputy chairman of Network Rail following the collapse of Railtrack.
His instant duties at Thames Water can be to reassure ministers and Ofwat about its monetary place and encourage shareholders to make good on a dedication to present £1bn in contemporary fairness capital.
The firm stated a yr in the past it deliberate to lift £1.5bn from shareholders to fund investments in “leakage and river health”, with £500m already dedicated and one other £1bn “subject to certain conditions”.
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Thames Water stated this week it’s working “constructively” with shareholders, together with Canadian and British pension funds and Chinese and Abu Dhabi sovereign wealth automobiles, to safe the funding.
The firm says the extra capital can be used to fund an £11bn program of works to handle leaks and air pollution by 2025, however there are reviews that billions extra can be required to satisfy regulatory necessities.
Concern over Thames Water noticed shares in three listed water corporations fall, with United Utilities down 3% and Severn Trent and Pennin, which serves prospects within the south west, each down round 5% in mid-afternoon.
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In a press release Ofwat stated: “Overall, the sector is continuing to attract international capital and is especially attractive to long term investors such as pension funds. Indeed, there has been an additional equity injection of around £2bn since 2020, with companies acting to strengthen their financial position.
“Ofwat will proceed to maintain corporations’ monetary resilience underneath shut scrutiny and work with corporations to make sure they take motion to make sure that they’ve the monetary backing to ship for patrons and the setting.”
Content Source: information.sky.com