Water Companies: Financial Resilience

Debate between Baroness Blower and Baroness Hayman of Ullock

Tuesday 23rd July 2024 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

Currently, the regulator is working with the company to look at the best way forward, and the company is looking for further investment.

[Baroness Blower (Lab)]

My Lords, speaking as a Thames Water customer who is not very confident or happy, I was pleased to hear that I might at least have drinking water going forward. All water companies are using financial engineering to overstate their investment and capacity to pay dividends. They all capitalise part of their interest payments, which is, frankly, a highly imprudent policy and was a major reason for the collapse of Carillion. Are the Government content with that?

[Baroness Hayman of Ullock (Lab)]

There are clearly serious problems in the water industry that have been building up for a number of years. We are looking at all options and ways forward to improve the situation, and, clearly, modelling of how companies operate will be part of those discussions.