Sun, 16 Mar 2025

Sun, 16 Mar 2025 Thames Water set for crucial court ruling

If it does collapse, who will pay and how much?
Thames Water's Fate to be Decided
* The Court of Appeal will decide on Thames Water's plan to borrow £3bn
* If approved, the company can avoid collapse and attempt restructuring
* If rejected, Thames Water may enter government-backed administration Estimating Costs
* Thames estimates a rescue could cost up to £4bn
* Charlie Maynard estimates it would cost £66m
* Others claim it would cost taxpayers nothing in the long run Arguments for and Against Rescue
* Supporters argue a rescue is in the public interest, as a government-backed administration would likely cost more
* Opponents argue it would serve the interests of current lenders and potentially leave customers to foot the bill Risks of Government-Backed Administration
* The taxpayer would bear financial risks in the short to medium term
* Longer-term, any losses could be recouped from sale proceeds
* However, the value of Thames' assets is uncertain, making it hard to estimate costs Government's Concerns
* Rescuing Thames comes with a cost that would affect public finances negatively
* The government may face difficulties in selling Thames back to the private sector at a profit
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