[Guardian] Exclusive: Common Wealth report argues debt, pollution and underinvestment justify process known as special administration
Ministers could bring water companies into public ownership for minimal cost through a process designed to safeguard vital public services when the companies running them are failing, a thinktank report has argued.
According to the report by Common Wealth, ministers could use a process known as special administration to take over a company like Thames Water and, rather than transfer it to another private company, keep it under permanent public ownership.
Writing for the thinktank, Ewan McGaughey, professor of law at King’s College London, said that while a figure of £99bn was commonly cited as the cost of taking over the industry in England, this was based on an estimate from a thinktank paid for by water companies.
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The actual market value of water companies, the report argued, seems to be lower, with the US private equity company KKR offering a £4bn injection of equity to take over Thames Water, when its supposed regulatory capital value is nearer £20bn.
It goes on to say that when debt levels of water companies are taken into account, for example Thames Water is about £20bn in debt, it would be possible for the government to argue that their appropriate value in law was notably less, even close to zero.
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Original article at https://www.theguardian.com/business/2025/jun/09/water-companies-public-ownership-could-cost-close-to-zero-says-common-wealth-thinktank