Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what discussions he has had with (a) Thames Water and (b) Ofwat since the withdrawal of KKR from discussions on an equity recapitalisation deal.

The Government and Ofwat – the financial regulator for the water sector – are carefully monitoring the situation at Thames Water, and Ofwat is working closely with the company to strengthen its long-term financial resilience within the context of its licence and broader statutory obligations. Thames Water is running an equity raise and has indicated that it will need a new capital structure requiring both more equity and a significant reduction in the level of debt and we are monitoring this process closely.