Thirty MPs demand Ofwat puts Thames Water into special measures. Exclusive: Labour and Green MPs write to regulator’s chief executive voicing fears about an expensive public bailout.
A group of 30 Labour and Green MPs have written to (state regulator) Ofwat to demand that Thames Water is taken into special measures. In an open letter to David Black, the chief executive of the regulator, the MPs expressed fears of an expensive public bailout and demanded that Thames Water be placed into the special administration regime (SAR) and restructured under public oversight.
Last month Thames Water was granted approval to seek a £3bn cash loan, which the beleaguered company said was crucial to ensure it had enough money to stave off temporary nationalisation.
Any loan would burden customers with extra costs, the MPs’ letter argues, as the 10% interest rate on the £3bn loan would “[force] households to bear an additional £250 over five years to cover £800m in interest payments”. Currently, 28% of Thames Water consumers’ bills service debt, and this is expected to increase by 31% this year.
