We’re prepared to change the law to reform water industry, says Angela Eagle
Summary
The UK government is considering changing laws to take Thames Water into public ownership because current insolvency rules do not handle the company's situation well. Environment Secretary Angela Eagle says the water industry needs reform, noting that Thames Water has a large debt and is owned by US hedge funds trying to change its debt deal to avoid nationalisation.Key Facts
- Thames Water is owned by US hedge funds including Elliott Management and Apollo Global Management.
- The company has a £20 billion debt and faces a record £122.7 million fine for sewage spills and illegal payments to shareholders.
- Ministers, led by Environment Secretary Angela Eagle, may alter the law to enable public ownership of Thames Water.
- Thames Water is not technically insolvent yet, so putting it into special administration is legally complex.
- Special administration is a process to protect companies that provide essential services but are failing financially or legally.
- The government is working on a new water bill that could give it more power to control or take over water companies.
- Thames Water’s owners want a £10 billion deal to restructure debt and avoid nationalisation, but this deal faces regulatory challenges.
- Angela Eagle is working closely with other officials to improve water infrastructure and respond to drought conditions in the UK.
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