Thames Water bosses could be hauled back to explain whether they misled MPs
Thames Water bosses are set to be hauled back to Parliament to explain whether they misled MPs over the flagging firm’s finances - and whether household bills could rise as a result.
The firm’s joint interim-CEO Alastair Cochran told the Commons Environment Committee in July its parent company had received £500 million in new equity funding from shareholders. But the firm’s financial filings revealed on Saturday show the cash injection to improve “leakage and river health” was a loan from the firm’s owners - charging 8% annual interest.
Reports of the complex financial arrangement prompted the committee to “question the accuracy of evidence provided to our Committee by Thames Water in July.” Chairman Sir Robert Goodwill said: “These recent revelations of Thames Water's financial situation raise further concerns about the stability of the company's finances and the actual ability of the company to invest the sums of money required to implement its turnaround plan.”
Thames Water, which supplies 15 million people - about a quarter of Britain - has been struggling under a £14 billion debt pile it has accrued since it was privatised in 1989.
The government held emergency talks with regulator Ofwat earlier this year - which could result in the utility being temporarily nationalised if it fails. Thames Water is also reportedly seeking approval from Ofwat to increase Londoners’ water bills by around 40% before inflation by 2030.
Teachers, civil servants and train drivers walk out in biggest strike in decade
It was fined £3.3 million in July after pleading guilty to four charges of illegally discharging waste. And in September it was accused of 110 ‘dry spills’ - where sewage is spilled on dry days - lasting 1,253 hours.
Sir Robert added: “Along with concerns over the implementation of the plans to remedy these problems, there are questions over the possibility that Thames Water customers will see a large rise in their bills associated with these plans.”
The Committee is considering whether to order Thames Water’s co-executives, Mr Alastair Cochran, who is also Chief Financial Officer, and Cathryn Ross, to return to Parliament to explain themselves.
In a statement, Thames Water said: “We are extremely fortunate to have such supportive shareholders. Their commitment to delivering Thames’ turnaround and life’s essential service is reflected in the largest shareholder support package ever proposed in the UK water sector, whilst taking no dividends out. Our audited 2022/2023 annual report and accounts record that £500mn was invested by shareholders into the business.”
Read more similar news:
Comments:
comments powered by Disqus
