Interesting think piece from The Mint Magazine, covering water industry performance since privatisation, levels of debt and investment, and options for reforming the sector under a new government.

The case for renationalisation

Another article from Labour Peer Prem Sikka and published in Left Foot Forward argues the case for renationalisation

Let Thames Water go bust: It’s time to bring water back into public ownership

England’s privatised water companies are an example of vulture capitalism.

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Trouble for Thames

Meanwhile, Fitch Ratings has downgraded Kemble Water Finance Limited’s (holding company of Thames Water Utilities Limited, TWUL) Long-Term Issuer Default Rating (IDR) and senior secured debt rating to ‘CC’ from ‘CCC’. The Recovery Rating is ‘RR4’.

The downgrade follows Kemble’s announcement on 28 March 2024 that it will not be able to fulfil its upcoming interest payments or refinance or repay the GBP190 million loan maturing on 30 April 2024, unless a maturity extension is granted by lenders.

Given the debt default, Thames is now looking for another solution, with Australia’s controversial investment bank Macquarie among potential lenders to Thames Water’s parent company.

Dieter’s view

Utilities expert Dieter Helm says Thames Water is “disaster of its own and regulators’ making” and calls for appointment of special administrator.