All posts tagged: nationalised

Thames Water at risk of being nationalised as £500m lifeline withheld

Thames Water at risk of being nationalised as £500m lifeline withheld

Thanks for joining me. Thames Water has been told it will not be given a £500m lifeline by the end of the month, putting the supplier a step closer towards nationalisation. Without the extra money from investors, who include Canadian pension fund Omers and the Universities Superannuation Scheme, Thames would be at risk of relying on a taxpayer-backed bailout. The business needs billions of pounds to survive. Thames announced last year that investors were willing to inject £3.25bn into the business, with £750m expected in 2024. 5 things to start your day  1) National Living Wage should start at 18 instead of 21, says pay-setting group | Business chiefs warn change would be unaffordable 2) Crunch meeting at Thames Water amid scramble for £750m | Directors race to finalise lifeline from shareholders and avoid special administration 3) BT to convert 2,000 old payphones into advertising screens | Telecoms giant plans to triple its number of digital screens despite local backlash 4) Morrisons’ losses mount amid debt finance pressures | Higher interest rates hammer supermarket as it attempts ambitious …

If Thames Water has to be nationalised, so be it. Ofwat should not be bullied | Nils Pratley

For their next session with Thames Water, the MPs on the environment select committee should summon the people who really matter: the shareholders who must find £3bn-plus in coming years if they wish to keep their over-indebted, under-performing and waterlogged company afloat. The committee might need a bigger room because the ownership collective is not small. It takes in two Canadian pension funds (with holdings of 32% and 9%), the pension fund for UK university academics (20%), the governments of Abu Dhabi (10%) and China (9%), the manager of BT’s pension fund (9%) and an Australian fund (5%). The first question to such a gathering would be simple. Are you trying to hold the regulator, Ofwat, to ransom before you commit more cash? That is the way it looks from outside. The hired hands, the stand-in co-chief executives, Cathryn Ross and Alastair Cochran, and non-executive chairman Sir Adrian Montague repeatedly told the committee that the owners are waiting for “clarity” from the regulator over the price controls that will operate from 2025-30. The desire to …