Government ‘preparing for collapse of Thames Water’ - Kent Online

The Government is reportedly preparing for the collapse of one of the country’s leading water companies.

Ministers are drawing up contingency plans to take Thames Water, which covers parts of Kent including Dartford, into temporary public ownership, reports Sky News.

The Government is reportedly preparing contingency plans for the collapse of Thames Water

Government officials and Ofwat, the industry regulator, are said to have started discussions about the possibility of placing Thames Water into a special administration regime (SAR) that would effectively take the company into public ownership.

This same process was used by the Government in 2021 when energy supplier Bulb collapsed.

The talks are at a preliminary stage, between Ofwat, the Treasury, and the Department for Environment, Food and Rural Affairs (DEFRA), and the contingency plans may not need to be activated.

This comes after the company’s chief executive stepped down with immediate effect yesterday, just weeks after being forced to give up her bonus over the company’s environmental and customer performance.

Thames Water said Sarah Bentley would leave the board yesterday but would continue to support her interim replacement until a new full-time boss was found.

Ministers and industry regulator Ofwat are in talks to prepare for Thames Water to go under, according to Sky News. Picture: Getty Images/iStock/John Shepherd

Chief finance officer Alastair Cochran will now take over as interim co-chief executive, along with Cathryn Ross, the former Ofwat chief executive who joined the business in 2021.

The company serves 15 million customers across London and the South East, and has recently faced pressure for its poor record on leaks and sewage contamination.

Last month, Thames Water launched a probe after raw sewage spewed onto a walkway near Holiday Inn Express in University Way, Dartford.

The water had come from the river under the tunnel and was spotted on the path next to a turnoff on the A282 leading to the Dartford Crossing on May 22.

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2023-06-28 07:50:00Z
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