The nationalization of the water from the tamesis in difficulties “is not the answer”, the Secretary of the Environment, Steve Reed, warned after a private capital giant withdrew from a rescue agreement of £ 4 billion, which threw the future of the company's future.
A rescue from the public services company loaded from debt would take money from the NHS and other public services, he said.
Thames Water has a debt of approximately 19 billion, and told parliamentarians last month that at a time this year had about five weeks of cash before going bankrupt.
The largest water supplier in Great Britain, which has 16 million customers, chose KKR at the end of March to be its preferred bidder under plans to invest around 4 billion new capital. But the firm said Tuesday that Kkr was no longer “in a position to proceed” and that his preferred bidder condition had expired.
In the shipping box, the conservative secretary of the shadow environment, Victoria Atkins, accused the ministers of having “talked about a rescue plan.”
Reed told MPS: “The Government is ready for any eventuality and will take measures as necessary. We are not looking at the nationalization because it would cost more than 100 billion public money that would have had to be eliminated from other public services such as the National Health Service to be granted to the owners of the water companies.
“It will take years to download the current model of property, during which pollution worsens and we know that nationalization is not the answer: you just have to look at the situation in Scotland to see that.”
Reed said that “it would not apologize” for addressing the behavior of water companies under the previous government. “I mean, we even had stories that have been confirmed by water companies from the previous state conservative secretaries shouting and shouting at the chiefs of the water company, but not really changing the law to do anything about the bonds they could pay.”
The spokesman for the Democratic liberal environment, Tim Farron, said that Thames Water should go to the special administration and arise “as a public interest company.”
The attached leader of Reform UK Richard Tice proposed a plan to “buy it for a pound, it is a good business for the taxpayer, so you will not have to pay huge atrocious interest rates, and the taxpayer and the clients will be the beneficiaries.”
KKR's measure is produced as an interim report of the Independent Water Commission found that the water sector in England and Wales needs a “fundamental restart” and requested a “strengthening and rebuilding” of the OFWAT regulatory role.
It is understood that Thames Water is now working on alternative plans with higher creditors. These creditors are the bond holders that effectively possess the water of the Thames after the Court higher at the beginning of this year approved a financial restructuring through a loan of up to £ 3 billion to ensure that it can continue to function until the summer of 2026.
Sir Adrian Montague, president of Thames Water, said: “We continue to believe that a sustainable recapitalization of the company is the best for all interested parties and continue working with our creditors and interested parties to achieve that goal.”
Kkr declined to comment.
An OFWAT spokesman said: “We are in contact with the company in its next steps in the light of its recent announcement to ensure that its capital increase process continues to ensure better financial resilience and operational performance.”
The firm was pressured last week when it was fined with a record of £ 122.7 million per Ophwat after it was discovered that it had broken rules about wastewater treatment and paying dividends.
Water companies have faced public and political outrage over the scope of pollution, increased invoices, high dividends and executive payment and bonuses.
Thames raised consumer water invoices for customers at an average of 31 percent in April and incurred an additional anger on the plans to pay the high -level bosses large bonds linked to the water company that ensures an emergency loan of £ 3 billion, which then retired.
