Feargal Sharkey has called on the government to take control of Thames Water as a step toward nationalizing the troubled supplier. Environment Secretary Emma Reynolds has expressed concerns about a proposed £10 billion deal by Thames’ lenders, emphasizing the potential burden on customers. The consortium, London & Valley Water, has offered to forgive half of Thames’ nearly £20 billion debt in exchange for immunity from pollution fines for four years.
Reynolds criticized Thames Water’s performance over the past 15 years, citing increased pollution and financial strain on customers. While the government has not directed Ofwat on the matter, the intervention could be significant. Sharkey has urged Reynolds to go further by seizing control of Thames Water immediately.
Advocates have long pushed for the public ownership of Thames Water, the UK’s largest water company. The potential route to nationalization could involve a special administration regime (SAR) as an interim measure. The proposal by London & Valley Water includes injecting £3.35 billion in equity and up to £6.55 billion in new debt into Thames Water, with additional costs for restructuring.
Amid these developments, 107 MPs, including 42 from the Labour Party, have called for rejecting the latest deal and placing Thames Water under special administration. Thames Water maintains that a market-oriented approach is best for long-term stability and service improvement. The company highlights ongoing infrastructure upgrades and commitment to delivering safe services while collaborating with stakeholders, government, and regulators.