Burnham shelves Thames Water administration plans over costs
Andy Burnham has paused plans to take public control of Thames Water over fears that it could saddle the taxpayer with a bill running into the billions of pounds. The Prime Minister had been considering putting the struggling utility into a special administration regime (SAR), which would allow the government to take partial control of [...]
Andy Burnham has halted his plans to take public control of Thames Water due to concerns over the potentially astronomical costs to taxpayers. The Prime Minister had been contemplating placing the struggling utility into a special administration regime (SAR) to gain partial control until a buyer surfaced. However, government officials have expressed worries about the financial burden a SAR regime would impose on taxpayers, potentially exceeding £2bn.
A 2024 report by advisory firm Teneo even suggested a £4.1bn cost for an 18-month SAR for Thames Water. In response, ministers have decided against an immediate move, exploring the possibility of a "viable option" for the company's administration instead. Thames Water's dire financial situation, with a staggering £20bn debt, has led to creditors setting out plans for a board shake-up, including appointing former bosses of Yorkshire Water and BT Openreach as non-executive directors.
The utility is grappling with a near-£20bn debt and has warned that it will run out of cash by the end of the year.
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