Thu, 13 Mar 2025

Thu, 13 Mar 2025 Taxpayers will suffer if Thames Water collapses, warns regulator

Ofwat says placing Thames under government control could end up costing taxpayers billions of pounds.

* If Thames Water, the UK's largest water company, were temporarily nationalized due to financial struggles, taxpayers and its pension schemes could suffer significant losses.
* The water regulator Ofwat has acknowledged that placing Thames under government control would likely cost billions of pounds, but disputes claims that administration would be cheap for taxpayers.
* Documents show that 12,000 current and former employees' future pension entitlements could be reduced if the company collapses into administration.
* The Court of Appeal is currently hearing arguments over whether a £3bn emergency loan to Thames Water can go ahead, with a decision expected early next week.
* Ofwat has insisted that Thames would not be able to recover additional interest payments from customer bills, and has rejected claims that administration would have minimal costs for taxpayers.
* The pension trustees of Thames Water have expressed concern that members could face significant losses if the company collapses into administration.
* If the loan is approved, Thames Water plans to reduce its debt pile by negotiating with lenders, challenge Ofwat's bill increase limits, and attract new investors.
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