Rachel Reeves urged a market-based, sustainable solution for Thames Water rather than placing the company into special administration. She sent a July letter to the Thames Water creditor group, representing about 100 financial institutions working on a rescue plan. Environment Secretary Steve Reed indicated the government was ready for all eventualities, including a special administration regime, prompting concern among debt-holders about temporary nationalisation, restructuring of 17.7bn net debt and a possible sale. Thames Water is effectively controlled by senior creditors after shareholders walked away, serves 16 million customers, and has faced collapse after underinvestment and dividend extraction.
The government recognises the seriousness of the situation facing Thames Water Our position remains that the company should find a sustainable, market-based solution to the current situation. This solution must not only secure the company's long-term financial stability but also deliver a successful turnaround that achieves positive outcomes for customers and the environment.
The government is prepared for all eventualities across its regulated industries and has undertaken detailed contingency planning for a special administration regime, should this be required to ensure the continued provision of vital public services.
He told MPs the government had stepped up our preparations and stand ready for all eventualities including [a] special administration regime if that were to become necessary.
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