MP to take Thames Water to Supreme Court over restructuring plan
A Liberal Democrat MP will take a case against Thames Water’s restructuring to the Supreme Court.
Charlie Maynard, MP for Witney, was among a group which included the utility’s secondary creditors, who opposed a £3bn emergency loan agreement earlier this year.
Thames Water has been battling to stave off special administration over the last year amid a debt pile of around £18bn and a crisis over sewage spills.
Private equity giant KKR pulled out of a rescue deal for the company in June, plunging the troubled water supplier into another race for outside investment.
The High Court had in February sanctioned a plan for group of Thames’ senior creditors, known as the Class A’s, to provide a £3bn lifeline that could keep it operational until 2026. The loan came with a 9.75 per cent interest and cost at least £100m in fees.
Thames Water’s crisis has coincided with a hefty rise in bills for consumers – sanctioned by Ofwat – as UK water firms look to fund vital infrastructure upgrades aimed at reducing sewage leaks.
An amendment will be pushed in the House of Commons tomorrow seeking criminal convictions for water executives who are found to have illegally polluted British waterways. Current rules mean bosses only face conviction if they are found to have covered up illegal spills.
Thames Water faces Supreme Court challenge
“For too long Thames Water has got away scot free, polluting waterways, underinvesting in infrastructure whilst customers’ bills rocket. This must end,” Maynard said in a statement on Tuesday.
“The money from our bills should be used to repair water infrastructure, improve customer service, and clean up our rivers, not spent on spiralling interest repayments.
“That’s why I am continuing to fight for Thames Water’s 16m customers, and taking my case to the Supreme Court.
“Customers must have a voice when these companies are being restructured, rather than just being stuck with the bill.”
A Thames Water spokesperson said: “Our liquidity extension plan was sanctioned by the High Court and upheld at the Court of Appeal.
“We remain focused on securing a market-led solution to restoring Thames Water to financial health, and unlocking the funds required to deliver better services and outcomes for our customers and the environment.”