https://morningstaronline.co.uk/article/renationalisation-only-way-end-thames-water-farce

107 MPs demand government rejects £10bn rescue deal put forward by Thames Water’s creditors

UNIONS, campaigners and MPs are demanding the government put an end to the uncertainty surrounding Thames Water and permanently nationalise the scandal-ridden utility.

They renewed their calls to nationalise the water firm today after Environment Secretary Emma Reynolds came out against a £10 billion rescue bid, saying it poses an “unfair cost to consumers.”

The minister’s warnings closely followed an open letter to Ofwat signed by 107 MPs demanding the government reject the deal put forward by Thames Water creditors to salvage the company.

Politicians expressed urgent concern over allowing the firm, which is responsible for almost a third of all the industry’s most harmful pollution incidents last year, to set its own rules through the proposed deal.

Ms Reynolds told the House of Commons today of her letter to water regulator Ofwat warning that the plan did not go far enough to protect the environment and water customers.

Thames Water hopes the deal will help stave off temporary nationalisation as it faces collapse due to being nearly £20bn in debt.

Although not an official government decision, the minister’s comments cast doubt on the viability of the plan which she said could mean Thames Water’s 16 million customers “bear an undue cost for investment in the company.”

Ms Reynolds added that the proposal likely means further delays to mandated environmental improvements of wastewater treatment facilities and other projects vital to drinking water safety.

On Tuesday, Ofwat was reportedly still close to accepting the offer from bidding consortium London & Valley Water, which proposed injecting £10bn into debt-ridden Thames Water.

In return, any new fines for sewage leaks would be waived for four years.

…

Article continues at https://morningstaronline.co.uk/article/renationalisation-only-way-end-thames-water-farce