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.
…
