Environment Secretary Emma Reynolds has expressed concerns over Thames Water's creditor rescue plan, citing unfair costs to customers and delays to infrastructure and environmental improvements. Special administration is now the most likely outcome, influenced by potential Prime Minister Andy Burnham's preference for public ownership.
UK Environment Secretary Emma Reynolds opposes a £10bn rescue plan for Thames Water, citing undue burden on consumers. The plan, which would see creditors take over the company, faces criticism for 15 years of underperformance and pollution. Calls for nationalisation are growing.
UK Environment Secretary has reportedly objected to a £10bn rescue plan for Thames Water, citing undue burden on consumers. The plan involves creditors injecting cash and taking over the company, potentially avoiding fines for sewage leaks. This development pushes the troubled utility closer to public ownership.
United Utilities share price jumped 11% after the water company announced an £800m share placing with Future Fund and Atlas as cornerstone investors. Ofwat's regulatory settlement a year ago has proven more generous than initially thought, particularly for companies not incurring heavy pollution fines. UU now targets 10-11% return on equity and seeks to spend an additional £2.5bn on infrastructure, potentially adding £10 to household bills. Severn Trent rose 7% in sympathy, with both companies at all-time highs.
