Thames Water has refused to be drawn on a bombshell report that it is lobbying both the government and regulator to avoid a bailout, with customers footing the bill.
The utilities giant which supplies water and manages waste for the capital declined to comment when asked if the claims first reported by the Financial Times were true.
In a piece today, the publication claims Thames Water is seeking “higher bills, dividend payouts and lower fines” from the government and regulator, to avoid either collapsing or a bailout.
It is also claimed it is lobbying Ofwat for “regulatory easements,” as it sits on a mountain £18bn debt pile, while sources in the government are preparing for its collapse, with contingency plans named “project Timber.”
This comes after it was announced Sir Adrian Montague resigned as chairman and director of Kemble, Thames Water Utilities Limited’s parent firm, last Friday.
In addition to Thames Water’s mammoth debts, it has faced criticism for its water and sewage leakages and is the only major water company to have created a map of sewage discharges, in a bid to be transparent.
Earlier in the month, the company admitted it will likely leak more water this year than it previously told investors and the UK’s water regulator.
In the company’s industry-mandated service commitment plan, the firm pushed up its leakage forecasts for this year from 550m litres a day to 585m and between 512m and 530m litres next year – up from the 507m previously forecast.
In January, the government updated insolvency laws for UK water companies to hedge against losses from potential state bailout funding, including due to Thames.
Ab Ofwat spokesperson said: “Ofwat does not comment on speculation.”
“Thames Water needs to continue to deliver on its turnaround plan to improve its operational and environmental performance.
“It is for the company to secure shareholder backing to improve its financial resilience. We will continue to closely monitor the company’s progress as they do so to protect customers’ interests.”
Defra, the department for environment food and rural affairs ,and Labour have been approached for comment.
Thames declined to comment.
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