Thames Water

Baroness Coffey Excerpts

Wednesday 17th June 2026 Lords Chamber

[Baroness Hayman of Ullock (Lab)]

It is because that is the generally understood figure. That is why we go with that figure.

[Baroness Coffey (Con)]

My Lords, the action by the Secretary of State in her letter is good. I fully support what she wrote regarding this proposition. Without going back on all the leverage, the main leverage issue on Thames Water happened in 2006. For some reason Ofwat did not follow entirely the strategy policy statement that was set out by my noble friend Lord Gove when he was there, but only for Thames Water. There clearly is an issue in that regard. Would the Minister consider working with her fellow Ministers on changing the geographic reach of Thames Water? The risk is that it is too big to fail when it should not be. Meanwhile, it has shown that it can do projects well, on such things as the Thames Tideway tunnel, which it did in partnership with Bazalgette Tunnel Ltd.

[Baroness Hayman of Ullock (Lab)]

That is an interesting point and it is being discussed. Thames Water is huge and has quite different catchment areas. I remember going on a boat to look at the successful tidal project in London that the noble Baroness talked about, in the early days. It was fantastic. However, you then have the much more rural, upstream part of Thames Water. It is very difficult. It is for whoever ends up owning it—what do they want to own? If you take away part of it, does it become less attractive? It is a complex issue but I know that it is being discussed.

--- Later in debate ---

[Baroness Hayman of Ullock (Lab)]

I know the Abingdon area applications very well. In a previous life I worked in communications on major infrastructure, and I remember it crossing my path probably 20 years ago now.

[Baroness Coffey (Con)]

My Lords, part of the reason why there have not been quite so many new reservoirs in such a long time is that the water industry has got more efficient in its distribution of water. I am conscious that there is still leakage. The capacity of the Hanningfield reservoir in Essex was expanded by 50%. There is no doubt that some of the challenges in housing are to do with nutrient regulations. But bearing in mind what other noble Lords have said, would it be worth while for the Government to accelerate the creation of a special purpose vehicle to get on with the Abingdon reservoir? Anglian Water is getting on with its two planned reservoirs and is going through the planning process as we speak.

[Baroness Hayman of Ullock (Lab)]

That is an interesting suggestion by the noble Baroness and one that I am happy to take back to the department.