Thames Water creditors prepare for legal fight over possible nationalisation
Summary
A group of investors holding most of Thames Water’s debt is willing to discuss more government control but not full public ownership. They are also preparing for a possible legal fight if the government temporarily takes over the company, which is struggling with high debt.Key Facts
- Thames Water is Britain’s largest water company and serves around 16 million customers.
- London & Valley Water (L&VW), a group of 100 investors, owns £17 billion of Thames Water’s £21 billion debt.
- L&VW wants to work with the government but does not support full public ownership of Thames Water.
- Andy Burnham, set to become prime minister, plans to use a special administration regime (SAR) for temporary public control of Thames Water.
- The SAR could cost taxpayers about £2 billion to keep the company running.
- Creditors say if taxpayers pay, they should get control to fix the company and secure water supply.
- L&VW has hired law firms to prepare for legal action if the government nationalises the company.
- The investors want to recapitalise Thames Water and return it to good financial health, avoiding taxpayer-funded administration.
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