The authorities stated it’s ready for a spread of situations amid fears Britain’s largest water firm might collapse.
Sky News has learnt that ministers and Ofwat, the trade regulator, have began to carry discussions about the potential of putting indebted Thames Water into momentary public possession.
Contingency plans are being drawn up amid rising doubts in Whitehall concerning the skill of the agency to service its £14bn debt-pile.
A authorities spokesperson stated that the debt “is a matter for the company and its shareholders”.
But they added: “We put together for a spread of situations throughout our regulated industries – together with water – as any accountable authorities would.
“The sector as a whole is financially resilient. Ofwat continues to monitor the financial position of all the key water and wastewater companies.”
Earlier, Sky News revealed the federal government is discussing putting Thames Water right into a particular administration regime (SAR) that might successfully take the corporate into momentary public possession, within the occasion of its collapse.
Such an insolvency course of was used when the power provider Bulb collapsed in 2021, sparking considerations that it might price taxpayers billions of kilos.
The talks inside Whitehall, which contain the Department for Environment, Food and Rural Affairs (DEFRA), Ofwat and the Treasury, stay at a preliminary stage and relate in the intervening time solely to contingency plans which can not should be activated.
Taking Thames Water into momentary public possession would inevitably gas calls from critics of the privatised water trade to renationalise the entire nation’s main water firms.
Thames Water serves 15 million prospects throughout London and the southeast of England and has come beneath intense strain in recent times due to its poor report on leaks, sewage contamination, government pay and shareholder dividends.
On Tuesday its chief government, Sarah Bentley resigned with quick impact after criticism of her £1.6m pay packet and the corporate’s environmental efficiency.
Source: information.sky.com”