privatise

Thames Water ‘rewarded for years of mismanagement’ with £3bn emergency loan

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https://morningstaronline.co.uk/article/thames-water-rewarded-for-years-of-mismanagement-with-ps3bn-emergency-loan

A tanker pumps out excess sewage from the Lightlands Lane sewage pumping station in Cookham, Berskhire, January 10 ,2024

Customers will bear brunt of sky-high interest rates though increased bills, campaigners warn

THAMES WATER’S £3 billion bailout was approved by the High Court today, triggering outrage as campaigners warned of higher bills from sky-high interest payments.

The High Court cleared the loan just weeks before the debt-laden firm was due to run out of money, temporarily staving off the possibility of special administration and temporary nationalisation.

Former Tory PM Margaret Thatcher wrote off the debts of Britain’s water firms when the industry was privatised in 1989.

But Thames Water, which serves 16 million customers, has since siphoned off £7.2bn in dividends, while amassing £19bn worth of debt.

In his judgment, Justice Leech noted that the headline interest rate on the emergency loan, which stands at 9.75 per cent was “very, very high.”

The Financial Times reported that the bailout could incur as much as £800 million in interest and fees.

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https://morningstaronline.co.uk/article/thames-water-rewarded-for-years-of-mismanagement-with-ps3bn-emergency-loan

Keir Starmer commits to play the caretaker role for Capitalism through the "hard times".
Keir Starmer commits to play the caretaker role for Capitalism through the “hard times”.
Continue ReadingThames Water ‘rewarded for years of mismanagement’ with £3bn emergency loan

Miliband urges energy watchdog to act as typical bill could rise by more than £100 a year

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https://www.theguardian.com/money/2025/feb/18/miliband-urges-energy-watchdog-to-act-as-typical-bill-could-rise-by-more-than-100-a-year

Ed Miliband, the energy secretary, has asked Ofgem to crack down on inaccurate and large bills. Photograph: Ina Fassbender/AFP/Getty Images

Exclusive: Whitehall source expects bills in England, Scotland and Wales to rise by about £9 a month over the next three months

Ed Miliband has urged the energy watchdog to take swift action as it emerged that the typical energy bill could soar by more than £100 a year amid a rise in global gas prices.

A Whitehall source said they expected bills in England, Scotland and Wales to increase by about £9 a month over the next three months in another challenge to government plans to tackle the cost of living.

They blamed volatile global gas prices linked to the end of the transit deal that enabled gas to flow to Europe, through Ukraine, from Russia.

Miliband, the energy secretary, has written an urgent letter to Ofgem, saying the price rise means the energy regulator must move faster to protect consumers.

This month, gas prices hit a two-year high, exacerbated by the lack of gas storage in Britain and Europe, combined with colder weather though prices have begun to stabilise. Cornwall Insight, a consultancy which produces closely watched forecasts for the energy price cap, is set to release its latest forecast on Tuesday.

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Article continues at https://www.theguardian.com/money/2025/feb/18/miliband-urges-energy-watchdog-to-act-as-typical-bill-could-rise-by-more-than-100-a-

Continue ReadingMiliband urges energy watchdog to act as typical bill could rise by more than £100 a year

Government and NHS boss ‘rewriting history’ on disastrous PFI

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https://morningstaronline.co.uk/article/government-and-nhs-boss-rewriting-history-on-disastrous-pfi

Health Secretary Wes Streeting with Prime Minister Keir Starmer (not seen) during a visit to Elective Orthopaedic Centre in Epsom, Surrey, January 6, 2025

BACKING private finance in the NHS should be a red line for any health secretary, campaigners charged today.

NHS England chief Amanda Pritchard told BBC Radio 4’s Today programme last week that the government should “consider” using private capital to fix the NHS’s crumbling infrastructure.

Today, Health Secretary Wes Streeting faced questions on the same programme about a potential return to failed private-finance initiative (PFI) schemes, in which private firms built hospitals and high-interest repayments were made over the long term.

Mr Streeting said that he does not pretend there are not “enormous challenges” because of NHS capital shortfall, and is “very sympathetic to the argument that we should try and leverage in private finance.”

But he admitted that many of the PFI deals “did lumber the NHS with an enormous cost that it continues to bear.”

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Johnbosco Nwogbo, of campaign group We Own It, said: “Support for more private finance in our NHS should disqualify you from being health secretary.

“Many NHS trusts are still spending more on PFI debts than on medicines for patients.

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https://morningstaronline.co.uk/article/government-and-nhs-boss-rewriting-history-on-disastrous-pfi

Continue ReadingGovernment and NHS boss ‘rewriting history’ on disastrous PFI

Calls mount for public ownership of Thames Water as it launches ‘blatantly greedy’ bid to hike bills

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https://morningstaronline.co.uk/article/calls-mount-public-ownership-thames-water-it-launches-blatantly-greedy-bid-hike-bills

GREED: Thames Water’s chief executive Chris Weston defended bosses getting £770,000 in bonuses

CAMPAIGNERS mounted further calls for Thames Water to be permanently brought into public ownership today [Friday] after the firm launched a “blatantly greedy and desperate bid” to hike bills yet again.

The firm has already been allowed to increase bills by 35 per cent over the next five years by regulator Ofwat.

Thames Water originally lobbied for a 59 per cent increase and is now asking the Competition and Markets Authority to review the decision.

On the verge of financial collapse, Thames Water sits on £19 billion of debts.

Despite this, it paid out £158.3 million in dividends last March, and attempted to award its CEO and CFO £770,000 in bonuses using customer money before being blocked by Ofwat.

Thames Water is currently waiting for a court decision on whether it will be allowed a £3.3bn creditor bailout to avoid falling into special administration at the end of March.

The loan will cost a mammoth £800m in interest and fees alone, which campaign group We Own It argues will add an extra £250 a year to household bills.

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https://morningstaronline.co.uk/article/calls-mount-public-ownership-thames-water-it-launches-blatantly-greedy-bid-hike-bills

Continue ReadingCalls mount for public ownership of Thames Water as it launches ‘blatantly greedy’ bid to hike bills

Campaigners blast NHS England boss after she suggests return to failed PFI deals

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https://morningstaronline.co.uk/article/campaigners-blast-nhs-england-boss-after-she-suggests-return-to-failed-pfi-deals

NHS England chief Amanda Pritchard

CAMPAIGNERS criticised the head of NHS England today after she backed the return of discredited private finance initiative contracts.

NHS England chief executive Amanda Pritchard floated the controversial idea as part of what she called a “radical” rethink in how Britain funds its infrastructure.

Recent data shows that the cost to repair Britain’s crumbling NHS buildings has spiralled to £13.8 billion, the highest on record.

Speaking to BBC Radio 4’s Today programme on Thursday, Ms Pritchard said: “We need to think much more radically, particularly about capital.

“So I think we now must consider private capital investment in the NHS because if we don’t fix our buildings, if we don’t fix our technology, we’re not going to get to a place where we can really drive that long-term improvement.”

The suggestion was slammed by anti-privatisation group We Own It.

Research by the group found that the current maintenance backlog bill is dwarfed by a £44bn debt that 80 trusts still owe to private firms for historic PFI contracts signed off by Tony Blair’s government.

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Article continues at https://morningstaronline.co.uk/article/campaigners-blast-nhs-england-boss-after-she-suggests-return-to-failed-pfi-deals

Keir Starmer confirms that he's proud to be a red Tory continuing austerity and targeting poor and disabled scum.
Keir Starmer confirms that he’s proud to be a red Tory continuing austerity and targeting poor and disabled scum.
Continue ReadingCampaigners blast NHS England boss after she suggests return to failed PFI deals