The water torture goes on at Thames. Sector-wide reform isn’t moving much faster | Nils Pratley
If ‘public control’ bit is delaying overhaul, that needs to be nailed down sharpish or continued uncertainty could be costly It is strange now to recall that Thames Water had a prominent slot on what was known as “Sue’s shit list” – the internal Labour dossier, compiled by Keir Starmer’s first chief of staff, Sue Gray, of potential crises that could erupt at short notice and force the incoming…
The Thames Water water crisis has dragged on for more than two years, with investors still waiting on a resolution. In July 2024, the water company was on Keir Starmer's "Sue's shit list" of potential crises, but progress on resolving the financial issues has been slow. Thames Water is seeking another £2.4bn from creditors to stay afloat, with the government now seeking a "greater public control" approach.
However, the government's 2024 decision to overhaul the wider water sector in England and Wales has been delayed, with the new water bill only expected to arrive this autumn. Ofwat, the regulator, remains in place, and nobody knows what elements of the Environment Agency will be absorbed into the new super-regulator. Moody's recently noted the stalled regulatory changes, with heightened political scrutiny potentially delaying the process and increasing business risk.
The government needs to decide on the specifics of water reform soon to avoid further delays and financial strain on customers.
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