WILL POSSIBLE COLLAPSE OF THAMES WATER SCUPPER THAMES SEWAGE PUMP PLANS?
Local campaigners against Thames Water’s so-called Thames Sewage Pump today welcomed news that the company could be on the brink of collapse and sold to a Chinese company.
Widespread reports today suggest that the Environment Secretary Steve Reed is making ‘active preparations’ to essentially nationalise the water giant by placing it into a ‘special administration’ scheme (SAR) while the Government looks for a new buyer and wipe out is £16.8billion debt.
Lead campaigner Ian McNuff, who lives in Teddington and heads up the SOLAR (Save Our Lands and River) scheme told Teddington Town today: “A welcome to SAR as a necessity now because Thames Water leadership has completely lost public trust, customers money and has failed the environment.
“Thames Water has created its own demise by consistently leaking its sewage, water, cash and any trust over many years and developing wasteful and environmentally damaging schemes line the Thames Sewage Pump.
“A reset is long overdue. The Special Administration Regime is designed for this very purpose. It would reopen the opportunity for many potential new owners who should have to pass some high hurdles of credibility if they are going to be future guardians of our largest water company. “
One of the leading contenders is CK Infrastructure Holdings (CKI), a Hong Kong based company, which could take over Thames Water within weeks of it going into special administration, The Times reported.
CKI already owns Northumbrian Water and UK Power Networks and has said it would be ready to introduce tougher fines for environmental infringements, which Thames Water’s creditors say is financially unviable.
Yesterday, Mr Reed approved the appointment of FTI Consulting to advise on contingency plans for Thames Water to be placed into special administration.
This would guarantee that even if Thames Water collapses, customers would continue to receive water and sewerage services. However, it could make taxpayers responsible for the billions of pounds of bailout costs at a time when public finances are already severely constrained.
The administration process can only be put in motion in the event that a company becomes insolvent, can no longer fulfil its statutory duties or breaches an enforcement order.
Mr Reed has previously stressed his desire to avoid taking Thames into temporary public ownership, but has said that he was ready for ‘all eventualities’.
Two senior government sources told the Times the situation had changed and a taxpayer bailout was the most likely option.
One said: ‘The political benefits of an SAR are apparent to us and it is now something we are looking very seriously at and preparing for it to happen.’
Another suggested it was now the government’s favoured option in the absence of a better deal from creditors.
Thames Water has been in financial crisis since the spring of last year when international shareholders quit the company because they felt it was no longer investable.
The period of public consultation is due to end on August 26th. You can see it here: Teddington Direct River Abstraction – Statutory Consultation 2025