The chief government of Thames Water has insisted he can rescue the debt-laden utility, which faces working out of money in months if it can’t increase contemporary fairness.
Talking after the surroundings secretary introduced new laws threatening water firm bosses with jail alongside a evaluation of the business, Mr Weston instructed Sky Information he was untroubled by the specter of prosecution, and assured he can flip across the troubled firm.
“I need to digest what the secretary of state said today, I am completely aligned with what he’s trying to do in cleaning up the rivers,” he mentioned.
“I’m focused, like he is, on getting investment and I will work with the secretary of state to do that. I am very encouraged by the tone I heard and I will work with him to try to do what he’s outlined to do.”
Requested straight if he might save Thames Water, he mentioned: “I can save it.”
With round £18bn of debt and money reserves solely till subsequent Could, Mr Weston is racing to lift contemporary funding after current shareholders withdrew plans for £3.5bn of contemporary fairness.
Final week the corporate requested regulator Ofwat to permit it to extend buyer payments by greater than 50% in trade for funding of greater than £20bn. Beforehand Ofwat capped future Thames invoice will increase at 21%.
If Mr Weston fails to lift contemporary capital or persuade bondholders to take a loss, Thames Water might fall into particular administration, successfully nationalisation, leaving taxpayers liable till it may be offered to new house owners.
The present shareholders have written off their funding.
Learn extra:
Water firm bosses might face jail time in new crackdown
Water firms face buyer anger over dividends and bonuses
Thames Water is probably the most excessive instance of the problem dealing with the privatised water firms, underneath acute strain to cut back sewage outflows and modernise infrastructure utilizing personal funding, whereas limiting invoice will increase.
They face large buyer anger on the scale of dividends and bonuses paid to shareholders and executives within the three many years since privatisation, funds they argue are obligatory to take care of a privatised system.
In addition to new laws giving Ofwat and the Atmosphere Company enhanced powers, Atmosphere Secretary Steve Reed introduced a evaluation of your entire business that may start within the autumn.
Water business figures welcomed the transfer, believing it will give them the chance to make the case that buyers require a extra beneficiant return than they’re at present allowed to supply by Ofwat.
‘We all want the same thing’
Within the viewers to listen to him set out his plans have been a few of the bosses Mr Reed mentioned have paid themselves £41m since 2021 in bonuses and incentives, together with Mr Weston and Liv Garfield, chief government of Severn Trent, the highest-paid water government.
Susan Davy, chief government of Pennon Group, which owns South West Water, instructed Sky Information: “We all just want the same thing and we’re going to focus on making sure we deliver for communities.”
Requested if she was involved about the specter of prosecution she mentioned: “I’m just going to focus on what’s best for communities and customers.”
