Thames Water investors say temporary nationalisation would slow its recovery
Summary
Investors in Thames Water warn that temporarily nationalizing the company would slow its recovery. Thames Water is close to agreeing on a rescue deal with creditors and the water regulator, Ofwat, to avoid running out of money by November.Key Facts
- Thames Water faces a financial crisis and needs £10 billion to stabilize and improve services.
- The company risks running out of money by November without new investment.
- Creditors and Thames Water are working on a rescue plan that involves no government funding.
- A “special administration regime,” a form of temporary nationalization, could happen if no deal is reached.
- Investors say temporary nationalization would cause delays, increase uncertainty, and hinder improvements.
- Labour politician Andy Burnham supports renationalizing utilities like water and energy.
- Thames Water has a £17.6 billion debt accumulated since it was privatized.
- Share prices of other water companies fell after Burnham’s renationalization comments.
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