Thames Water

Debate between Charlie Maynard and Emma Reynolds

Tuesday 16th June 2026 Commons Chamber

[Emma Reynolds]

As I said in answer to a previous question, through the clean water Bill the Government will seek to ensure that the new water regulator—which will be integrating the functions of Ofwat, the EA, the Drinking Water Inspectorate and Natural England—does not allow companies to get into the sorts of unmanageable levels of debt that we have seen.

[Charlie Maynard (Witney) (LD)]

It is clear that the creditors’ consortium has material influence over Thames Water, as it is funding the company and bilaterally negotiating with the Government. Material influence means that the consortium meets the defined criteria of being an ultimate controller. Will the Secretary of State finally acknowledge that fact and work with Ofwat to enforce it?

[Emma Reynolds]

We are working closely with Ofwat, which has been talking to the consortium of investors for two years. Through my officials, the Government have been in discussions with the consortium alongside Ofwat since November. I thank all the officials who have been involved in those discussions. We need to find a way forward that puts customers and the environment at its heart.

Water White Paper

Debate between Charlie Maynard and Emma Reynolds

Wednesday 21st January 2026 Commons Chamber

[Emma Reynolds]

I agree with my hon. Friend that it is unacceptable. These companies should respect both the spirit and the letter of the law. As I have said, Ofwat is considering what further action it can take to ensure that these companies obey the law that this House passed last year.

[Charlie Maynard (Witney) (LD)]

I welcome the White Paper and thank the Secretary of State and her team for their work. I am keen to understand how it will work in practice. As the Secretary of State will know, Thames Water’s largest equity shareholder wrote down its shareholding to zero in May 2024, so the equity is widely regarded as worthless. That leaves the debt, three quarters of which is held by the London & Valley consortium, the class A creditor. Does she agree that, given that the equity is worthless, leaving only the debt, the consortium obviously has material influence over the company?

[Emma Reynolds]

I am sorry, but I cannot get into the specifics of Thames Water at what is quite a sensitive moment. What I can say is that it is financially stable, but the Government are prepared for all eventualities, including a special administration regime if one were needed, but I cannot go into the detail of what is happening.