LONDON (AFP) – The United Kingdom (UK) government is considering temporary renationalisation of indebted Thames Water, Britain’s biggest supplier of the commodity, media reports said yesterday, one day after its chief executive resigned.
Sarah Bentley stepped down with immediate effect amid mounting worries over the company’s debt which totals nearly GBP14 billion (USD18 billion) – as the creaking sector faces a huge bill to clean up sewage.
Thames Water supplies 15 million homes and businesses in London and elsewhere in southern England.
Canadian pension fund Ontario Municipal is its biggest shareholder with almost one-third of the group. Britain privatised its water industry in 1989 when Margaret Thatcher was prime minister.
The country’s water companies have accumulated combined debt of GBP54 billion since privatisation, to fund investments and shareholder dividends, according to an investigation last year by The Guardian newspaper.
Responding to reports of a possible renationalisation, a government statement said Thames Water’s present situation was “a matter for the company and its shareholders”.
“The sector as a whole is financially resilient. (Water regulator) Ofwat continues to monitor the financial position of all the key water and wastewater companies,” it added.
