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The government said it is prepared for a range of scenarios amid fears Britain’s biggest water company could collapse.

Sky News has learnt that ministers and Ofwat, the industry regulator, have started to hold discussions about the possibility of placing indebted Thames Water into temporary public ownership.

Contingency plans are being drawn up amid growing doubts in Whitehall about the ability of the firm to service its £14bn debt-pile.

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A government spokesperson said that the debt “is a matter for the company and its shareholders”.

But they added: “We prepare for a range of scenarios across our regulated industries – including water – as any responsible government would.

“The sector as a whole is financially resilient. Ofwat continues to monitor the financial position of all the key water and wastewater companies.”

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Earlier, Sky News revealed the government is discussing placing Thames Water into a special administration regime (SAR) that would effectively take the company into temporary public ownership, in the event of its collapse.

Such an insolvency process was used when the energy supplier Bulb collapsed in 2021, sparking concerns that it could cost taxpayers billions of pounds.

The talks within Whitehall, which involve the Department for Environment, Food and Rural Affairs (DEFRA), Ofwat and the Treasury, remain at a preliminary stage and relate at the moment only to contingency plans which may not need to be activated.

Thames Water has said it is working “constructively with its shareholders” in relation to further funding needed for its turnaround and insisted it “continues to maintain a strong liquidity position”.

“Ofwat is being kept fully informed on progress of the company’s turnaround and engagement with shareholders,” they said in a statement.

“Thames Water remains focused on delivering for its customers, the environment and stakeholders.

“Thames Water continues to maintain a strong liquidity position, including £4.4 billion of cash and committed funding, as at March 31 2023.”

Thames Water is owned by a consortium of pension funds and sovereign wealth funds, many of which are understood to be sceptical about delivering additional funding.

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Reports suggest the firm is racing to raise £1 billion from investors to shore up its finances

Work and Pensions Secretary Mel Stride said he is confident that, whatever happens with Thames Water, the “water will continue to flow”.

Taking Thames Water into temporary public ownership would inevitably fuel calls from critics of the privatised water industry to renationalise all of the country’s major water companies.

Thames Water serves 15 million customers across London and the southeast of England and has come under intense pressure in recent years because of its poor record on leaks, sewage contamination, executive pay and shareholder dividends.

On Tuesday its chief executive, Sarah Bentley resigned with immediate effect after criticism of her £1.6m pay packet and the company’s environmental performance.

Thames Water has been fined numerous times, and is facing a deluge of regulatory probes.

In 2021, it was hit with a £4m penalty for allowing untreated sewage to escape into a river and park, while in August 2021, it was ordered to pay £11m for overcharging thousands of customers.

Labour MP Dawn Butler, responding to the news about the company’s finances, tweeted: “How is this possible when they’re paying huge amounts to their shareholders?

“When companies are asked to invest in something for the public good they never find the money. Wake up people! Time to put the public before corporate greed.”

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Passengers travelling to Heathrow Airport face delays on M4 after car catches fire in tunnel

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Passengers travelling to Heathrow Airport face delays on M4 after car catches fire in tunnel

Passengers travelling to Heathrow Airport are facing delays on the road after a vehicle caught fire in a tunnel.

“Due to an earlier vehicle fire, road access to Terminals 2 and 3 is partially restricted,” the airport said in a post on X shortly before 7am.

“Passengers are advised to leave more time travelling to the airport and use public transport where possible.

“We apologise for the disruption caused.”

AA Roadwatch said one lane was closed and there was “queueing traffic” due to a vehicle fire on Tunnel Road “both ways from Terminals 2 and 3 to M4 Spur Road (Emirates roundabout)”.

“Congestion to the M4 back along the M4 Spur, and both sides on the A4. Down to one lane each way through one tunnel…,” it added.

National Highways: East said in an update: “Traffic officers have advised that the M4 southbound spur Heathrow in Greater London between the J4 and J4A has now been reopened.”

The agency warned of “severe delays on the approach” to the airport, recommended allowing extra time to get there and thanked travellers for their patience.

The London Fire Brigade said in a post on X just before at 7.51am it was called “just before 3am” to a car fire in a tunnel near HeathrowAirport.

“Firefighters attended and extinguished the fire, which involved a diesel-powered vehicle. No one was hurt and the airport has now confirmed the tunnel has re-opened.”

Travellers writing on social media reported constrasting experiences, with @ashleyark calling it “complete chaos on all surrounding roads”, but @ClaraCouchCASA said she “went to T5 and got the express to T3”, describing the journey as “very easy and no time delay at all. 7am this morning. Hope this helps others”.

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Man arrested on suspicion of murder after woman shot dead in Talbot Green, South Wales

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Man arrested on suspicion of murder after woman shot dead in Talbot Green, South Wales

A man has been arrested on suspicion of murder after a 40-year-old woman was shot dead in South Wales.

The woman was found with serious injuries just after 6pm on Sunday and died at the scene despite the efforts of emergency services.

She was discovered in the Green Park area of Talbot Green, a town about 15 miles west of Cardiff.

A 42-year-old local man is in police custody.

Detective Chief Inspector James Morris said: “I understand the concern this will cause the local community, and I want to reassure people that a team of experienced detectives are already working at pace to piece together the events of last night.”

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South Wales Police said a number of crime scenes have been set up and road closures are in place.

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Drivers ‘confused’ by transition to electric vehicles, ministers warned

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Drivers 'confused' by transition to electric vehicles, ministers warned

UK drivers are “confused” by the country’s electric car transition, ministers are being warned.

Although most drivers are not hostile towards electric vehicles (EVs), many are confused about what changes are coming and when, according to new research from the AA.

In a survey of more than 14,000 AA members, 7% thought the government was banning the sale of used petrol and diesel cars.

Around a third thought manual EVs exist, despite them all being automatic.

More than one in five said they would never buy an EV.

The government’s plan for increasing the number of electric vehicles being driven in the UK focuses heavily on increasing the supply of the vehicles.

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What you can do to reach net zero

In 2024, at least 22% of new cars and 10% of new vans sold by each manufacturer in the UK had to be zero-emission, which generally means pure electric.

More on Climate Change

Each year, those percentages will rise, reaching 80% of new cars and 70% of new vans in 2030.

Manufacturers will face fines of £15,000 per vehicle if electric vehicle sales fall short of 28% of total production this year.

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By 2035, all new cars and vans will be required to be fully zero emission, according to the Department for Transport.

Second-hand diesel and petrol cars will still be allowed to be sold after this date, and their fuel will still be available.

There are more EVs – but will people buy them?

In February, 25% of new cars were powered purely by battery and in January, they made up 21% of all new cars registered in the UK.

But despite the growth of electric sales, manufacturers continue to warn that the market will not support the growth required to hit government EV targets, and called for consumer incentives and the extension of tax breaks.

The AA suggested the government’s plan focuses on “supply but does little to encourage demand for EVs”.

It called on ministers to co-ordinate a public awareness campaign alongside the motoring industry which directly targets drivers who doubt the viability of EVs.

“Our message to government is more needs to be done to make EVs accessible for everyone,” said Jakob Pfaudler, AA chief executive.

Which? head of consumer rights Sue Davis said: “When it comes to making sustainable choices such as switching to an electric car, our research shows that people are often held back by high costs, complex choices or uncertainty.

“The government needs to provide the right information on electric vehicles and other sustainable choices so that people have the confidence to switch.”

A Department for Transport spokesperson said: “We’re investing over £2.3bn to help industry and consumers make a supported switch to EVs.

“This includes installing a public charge point every 28 minutes, keeping EV incentives in the company car tax regime to 2030, and extending 100% first-year allowances for zero-emission cars for another year.

“Second-hand EVs are also becoming cheaper than ever, with one in three available under £20,000 and 21 brand new models available for less than £30,000.

“We’re seeing growing consumer confidence as a result.”

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