Thames Water Debate
Full Debate: Read Full DebateDepartment: Department for Environment, Food and Rural Affairs
Baroness Grender
Main Page: Baroness Grender (Liberal Democrat - Life peer)Department Debates - View all Baroness Grender's debates with the Department for Environment, Food and Rural Affairs
Thames Water
Baroness Grender Excerpts(3 weeks, 4 days ago)
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Baroness Hayman of Ullock (Lab)
One of the reasons that bills are going up—not just for Thames Water customers but for other consumers—is the lack of investment for years and years by the water companies in infrastructure, which is why we have so many problems with pollution, for example. While it is not something that the Government want to see continue—we do not want to see consumer bills going up unnecessarily—it is important that, with the PR24 settlement that was made, that money goes directly into investment, which is why we are stopping dividends and unnecessary bonuses being paid.
Baroness Grender (LD)
My Lords, does the Minister agree that the creditors who have heaped billions in debt on to the company should now pay to sort this mess out, possibly through a well-planned administration process and a swift exit, after which the company should be mutually owned by the 16 million customers? Do the Government now have plans ready and in place for Thames Water to be brought into special administration? What plans do the Government have for a new operating model for water companies to work for the public benefit?
Baroness Hayman of Ullock (Lab)
Any future operating model will be part of Sir Jon Cunliffe’s review that is currently taking place—I am sure the noble Baroness will be aware that the interim report is out. That will be part of the work being carried out by Sir Jon and others.
The big issue is that fundamentally this a private company. It for the company to solve the issues of financial resilience. It is not for us to tell a private company how to manage its finances. That is really important. But, having said that, we have to be prepared for all eventualities across regulated industries and Thames Water has clearly had some pretty serious problems. If it comes to a SAR, creditors cannot ask the debt to be repaid during that special administration regime. If it did come to that, there is a moratorium on legal proceedings during a SAR and that would take away the creditors’ ability to enforce any debt repayments.