UK 'closely monitoring' Thames Water, ready to act, says minister
Adds byline
By Muvija M
LONDON, Oct 23 (Reuters) -The British government is closely monitoring struggling water supplier Thames Water and is ready to take action if needed,environment minister Steve Reed said on Wednesday, although he ruled out renationalisation of the sector as a whole.
Thames Water, which has warned that it could run out of funds in the coming months, is facing the possibility of state ownership under a special administration regime if it fails to raise money.
Britain's water regulator, Ofwat, has already imposed a "Turnaround Oversight Regime" on Thames Water, the country's biggest water company, and appointed an independent monitor to report on its progress in turning around the business.
"We're closely monitoring the situation with Thames ... the company remains viable, but if we have to take action, we are prepared to do that," Reed told LBC Radio after launching an independent commission into the sector.
But he ruled out renationalisation of the industry, which is facing a major crisis since its privatisation in 1989 after years of under-investment and pollution scandals affecting rivers, lakes and seas.
"It could cost up to a 100 billion pounds to buy out the current owners, and secondly, it would take years to unpick the current ownership model, and that would choke off investment and mean the water pollution would get even worse," he told the BBC.
Utility bosses from the water and energy industries had cautioned against state-ownership in the run-up the 2019 election when the then Labour Party leader, Jeremy Corbyn, set out proposals to nationalise certain sectors.
"I think the public ... don't want the taxpayer to foot the bill (of renationalisation)," Reed said, speaking one week before the government's budget. It has warned that tough decisions would be needed to fill a 22 billion-pound spending hole.
Reporting by Muvija M, Editing by Paul Sandle
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
