Thames Water

Baroness Wheatcroft Excerpts

Wednesday 17th June 2026 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

The Government are very keen to crack on with building new reservoirs, which are an absolutely critical part of the infrastructure we need for the future. One reason for bringing in the Planning and Infrastructure Act was to look at how we can speed up planning for nationally significant infrastructure projects, because one reason we do not have any new reservoirs is problems with major projects. The whole purpose of that Act was to speed this up. I do not know whether 10 years is an accurate figure: I would hope that we could crack on more quickly than that.

[Baroness Wheatcroft (CB)]

My Lords, given that Thames Water was saddled with unsustainable debts and a very poor level of investment, does the Minister accept that, however justified, continuing to levy massive fines on a company for underperformance will simply and inevitably worsen its financial situation, and therefore that the suggestion of a cap that is being made by the potential buyers and funders does have a degree of good sense to it?

[Baroness Hayman of Ullock (Lab)]

I can see where the noble Baroness is coming from. The difficulty is that if a company continues to pollute regularly and other water companies are being fined, where is the fairness and logic in letting one company off the hook because it has got itself into a worse mess? These are difficult, complex areas to get right. It is very much Ofwat’s decision, and I am sure the Government will continue to discuss such matters with it.