Feargal Sharkey has called on the government to take control of Thames Water as the troubled supplier edges closer to nationalization. Environment Secretary Emma Reynolds has expressed concerns about a proposed £10 billion deal by Thames’ lenders, warning that it could burden customers.
Ofwat, the regulator, was reportedly considering an offer from a consortium called London & Valley Water. This deal involves forgiving half of Thames’ nearly £20 billion debt in exchange for immunity from pollution fines for four years. However, Reynolds criticized the proposal, citing years of underperformance and pollution issues affecting customers.
Sharkey urged Reynolds to go a step further and seize control of Thames Water to address customer grievances. There have been ongoing calls for the UK’s largest water company, Thames, with 16 million customers, to be brought back into public ownership through a special administration regime.
Peter Hammond, featured in Channel 4’s ‘Dirty Business’ documentary on water pollution, supports the consideration of a special administration regime for Thames but emphasizes the need to eliminate profit motives in the industry.
The letter from Reynolds coincides with a challenging period for Prime Minister Keir Starmer, with Andy Burnham, the Mayor of Greater Manchester, potentially launching a leadership challenge. Burnham has advocated for a 10-year plan to renationalize the water sector.
Critics, including GMB union activist Cliff Roney, have welcomed the rejection of the proposed deal, calling for full renationalization of water companies to protect consumers and workers.
A group of 107 MPs, including 42 from the Labour Party, have urged Ofwat and Reynolds to dismiss the latest deal from Thames Water’s creditors and consider placing the utility under special administration.
Thames Water maintains its stance on a market-led solution for long-term stability, emphasizing ongoing infrastructure improvements and commitment to customer service and environmental responsibilities.
