Creditors have vetoed a bid by the UK’s worst-offending water company to use an emergency loan – intended to help it avoid nationalisation – to pay fines totalling £400 million so has Thames Water’s credit run dry at last?
According to the Financial Times, Thames Water
has calculated that it will receive fines totalling about £400mn by March 2027, according to documents seen by the Financial Times. Penalties expected to land next year alone include a £44mn fine for allegedly paying excessive dividends, and another £135mn in environmental charges for sewage pollution.
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The troubled utility
secured an emergency loan last month worth as much as £3bn from its largest creditors — which include US hedge funds such as Elliott Management, alongside UK asset managers — to help it avoid renationalisation. But these lenders have insisted to both the utility and to Ofwat that they will not allow the proceeds of this loan to be used to pay financial penalties, according to people familiar with the discussions.
The spectre of fines has made Thames Water’s negotiations with the creditors behind its £19bn debt pile increasingly fraught, however, as the lenders argue that the company needs “breathing space” from regulatory fines to stabilise the business.
So the company’s lenders want “breathing space”. I understand Germany wanted that before World War II, and look how that turned out.
This Writer tends to agree more with Prem Sikka on X:
Yes – it’s time to nationalise this failed experiment in corruption.
But will Keir Starmer – himself now well on the way to becoming a failed experiment in corruption – have the guts to do it?
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Has Thames Water’s credit run dry at last?
Creditors have vetoed a bid by the UK’s worst-offending water company to use an emergency loan – intended to help it avoid nationalisation – to pay fines totalling £400 million so has Thames Water’s credit run dry at last?
According to the Financial Times, Thames Water
Buy Cruel Britannia in print here. Buy the Cruel Britannia ebook here. Or just click on the image!
Yes – it’s time to nationalise this failed experiment in corruption.
But will Keir Starmer – himself now well on the way to becoming a failed experiment in corruption – have the guts to do it?
Vox Political needs your help!
If you want to support this site
(but don’t want to give your money to advertisers)
you can make a one-off donation here:
Be among the first to know what’s going on! Here are the ways to manage it:
1) Register with us by clicking on ‘Subscribe’ (bottom right of the home page). You can then receive notifications of every new article that is posted here.
2) Follow VP on Twitter @VoxPolitical
3) Like the Facebook page at https://www.facebook.com/VoxPolitical/
Join the Vox Political Facebook page.
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5) Follow Vox Political writer Mike Sivier on BlueSky
6) Join the MeWe page at https://mewe.com/p-front/voxpolitical
7) Feel free to comment!
And do share with your family and friends – so they don’t miss out!
If you have appreciated this article, don’t forget to share it using the buttons at the bottom of this page. Politics is about everybody – so let’s try to get everybody involved!
Buy Vox Political books so we can continue
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Cruel Britannia is available
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The Livingstone Presumption is available
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Health Warning: Government! is now available
in either print or eBook format here:
The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:
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