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.
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.
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.
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.
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.”
Migrant sex offender Hadush Kebatu, who was wrongly freed from prison, has claimed in an interview with Sky News that he tried to hand himself in to police a day before he was arrested, but was ignored by officers.
The Home Office said Kebatu, 38, was deported from the UK on Tuesday night.
Speaking to Sky News after he arrived back in Ethiopia on Wednesday morning, Kebatu shared details of his accidental release from HMP Chelmsford on 24 October and the two-day manhunt that followed.
The convicted sex offender was repeatedly questioned on his crimes, but Sky News has chosen not to broadcast this part of the interview.
‘Ignored’ by police
The morning after he was released from prison, Kebatu claimed he tried to hand himself into police, but was ignored.
He said: “I [told] police, look here, police I am wanted man, I am arrested, I will give you my hand, please help where is police station? He ignored me, he drove [off].”
He added that he told the officer his name and that he was mistakenly released from prison.
“I am not unknown. The police station, where is the place? But also I go to police, I will give you my hand please help me where is the police station, take me, I am wanted.
“You know me, or my image, my name is Hadush Kabatu, nationality Ethiopia. Please, I was the mistake release from Chelmsford prison. Please help me.”
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Moment Hadush Kebatu put on deportation flight
Responding to Kebatu’s claims, the Metropolitan Police told Sky News: “The Met is not aware of any evidence to support the claims that Kebatu approached officers on Saturday morning.
“The actions of officers who responded to the sighting of him on Sunday morning show how seriously they were taking the manhunt. Kebatu’s actions on the morning of his arrest were more like those of someone trying to avoid officers, not trying to hand himself in.”
Release from prison
Kebatu was released by HMP Chelmsford a month into his 12-month sentence on the expectation he would be picked up by immigration enforcement.
He said after he was released he waited more than three hours outside the prison, for what he described as someone who was “responsible” for him.
He said: “At that time I am waiting more than three hours… who [is] responsible for me? Where is Home Office, where is [immigration]?
“I was told there was a bus. Also, all the experts, they all ignored me.”
In another Sky News story, a delivery driver who spoke to Kebatu outside Chelmsford prison said he looked “confused”.
The driver said he was approached by the prisoner, who had no idea where he was supposed to go. He said Kebatu waited outside the prison for roughly “an hour and a half” before leaving.
Kebatu said after he left the prison, he asked a passerby where the train station was. He claimed someone helped him, and bought him a train ticket for £18.
Image: Kebatu’s movements the day he was released from prison
The Ethiopian national arrived in the UK on a small boat on 29 June. Days after his arrival, he sexually assaulted a 14-year-old girl and a woman in Epping, Essex, where he was staying.
He was found guilty of two counts of sexual assault, one count of attempted sexual assault, one count of inciting a girl to engage in sexual activity and one count of harassment without violence.
When approached by Sky News, the Ministry of Justice (MoJ) pointed to a statement made by Justice Secretary David Lammy upon Kebatu’s deportation: “Kebatu has been returned to Ethiopia where he belongs.
“I am grateful to Home Office colleagues for acting swiftly to secure his deportation. I have been clear from the outset that a mistake of this nature is unacceptable, and we must get to the bottom of what happened.
“I have established an independent investigation chaired by Dame Lynne Owens into last Friday’s events to get the public the answers they rightly deserve, and we have introduced the strictest checks ever seen in our prison system to stop similar unacceptable errors in future.”
Essex Police, who arrested Kebatu after the assaults in July, told Sky News: “Our officers responded quickly to the reports of the sexual assaults committed in Epping and arrested Hadush Kebatu on the same day the offences were reported to us.
“Kebatu was then immediately remanded in custody, while officers acted diligently and professionally securing charges and building a case which saw Kebatu convicted following a trial. Protecting women and girls is a priority for Essex Police and our swift and thorough actions highlight our commitment to this.”
Migrant sex offender Hadush Kebatu was given £500 to be deported to Ethiopia following his mistaken release from prison, Sky News understands.
The government, who confirmed he was escorted on to a plane at Heathrow Airport on Tuesday night, said he has no right to return to the UK.
But Sky News understands Kebatu was handed a discretionary payment of £500 as part of efforts to avoid a lengthy legal challenge after he made threats to disrupt his removal.
Home Secretary Shabana Mahmood said she “pulled every lever” to deport Kebatu, although it is thought the decision about the payment was made by removal teams, not ministers.
“I am pleased to confirm this vile child sex offender has been deported. Our streets are safer because of it,” she said.
Image: Hadush Kebatu seen on the plane during his deportation flight
Image: Hadush Kebatu was arrested on Sunday after his mistaken release
He was expected to be deported, but instead of being handed over to immigration officials, he was released in error from HMP Chelmsford on Friday.
He spent just under 48 hours at large before he was apprehended.
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Prisoner releases: ‘A problem on the rise’
The accidental release sparked widespread alarm and questions over how a man whose crimes sparked protests in Epping over the use of asylum hotels was able to be freed.
Ms Mahmood said: “Last week’s blunder should never have happened – and I share the public’s anger that it did.”
Image: Anti-asylum demonstrators in Epping, Essex. Pic: PA
On Sunday, Justice Secretary David Lammy said an exclusive Sky News interview will be used as part of an independent inquiry into the mistaken release.
Speaking to Sky’s national correspondent Tom Parmenter, a delivery driver who spoke to Kebatu at HMP Chelmsford described him as being “confused” as he was being guided to the railway station by prison staff.
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Local council reads family statement: ‘My family feels massively let down’
The migrant is said to have returned to the prison reception four or five times before leaving the area on a train heading to London.
Mr Lammy, who put Kebatu’s release down to human error, said he has ordered an “urgent review” into the checks that take place when an offender is released from prison, and new safeguards have been added that amount to the “strongest release checks that have ever been in place”.
A university academic who is receiving “substantial damages” for how he was portrayed in a film has told Sky News he hasn’t received an apology from star Steve Coogan – nor the two companies involved in its production.
Richard Taylor said he was “shell-shocked” after seeing The Lost King for the first time, a film about how Richard III’s skeleton was discovered below a car park in Leicester.
He told The UK Tonight with Sarah-Jane Mee:“I wasn’t consulted or even knew I was in the film. The first I hear is I get a phone call while I’m on holiday – and eventually, after press previews, I persuade the producers to let me see a preview.”
Image: Richard III
Last year, a judge ruled that Mr Taylor was depicted as “smug, unduly dismissive and patronising” – with the plot suggesting he “knowingly” misled the public.
“I’m portrayed by someone on screen who looks like me, who sounds like me, who dresses like me – but behaves in a way that falls so far short of the standards I set for myself and what others might reasonably expect of me,” the academic explained.
Mr Taylor revealed he received emails at work telling him to “rot in hell”, while others described him as a “disgrace”.
He added: “Something that was a collaborative effort that showcased the best of British universities in my view was turned into this farce – where I was the villain and portrayed in a way that was completely inconsistent with the reality and the truth.”
Now chief operating officer at Loughborough University, Mr Taylor said “none of the facts” in the 2022 film were ever checked – and the Alan Partridge star, his company Baby Cow and Pathe Productions did not reach out to him before its release.
“The producers just went ahead, filmed it, produced it, stuck it out there and left me to deal with all the flack and all the fallout from it. Grossly unfair and I feel vindicated from the result we’ve achieved,” he told Sky News.
Image: Steve Coogan and two production companies have agreed to pay ‘substantial damages’. Pic: PA
‘The film’s going to look pretty silly’
As part of the settlement, an on-screen clarification will now be added to the start of the film, but no scenes will be removed.
When asked whether he was satisfied with this outcome, Mr Taylor replied: “I’d have liked them to re-edit the film, but one’s got to be realistic about what one can achieve.
“The insertion of the card will say that the person on screen is a fictitious portrayal – and the real Richard Taylor didn’t behave like that … so the film’s going to look pretty silly.”
Image: The statue of Richard III outside Leicester Cathedral. Pic: Shropshire Matt/PA
The case was due to proceed to trial, but a High Court hearing on Monday heard that the parties had settled the claim.
In a statement afterwards, Cooganhad said: “If it wasn’t for Philippa Langley, Richard III would still be lying under a car park in Leicester. It is her name that will be remembered in relation to the discovery of the lost king, long after Richard Taylor has faded into obscurity.”
He went on to add: “That is the story I wanted to tell, and I am happy I did.”
Reacting to the statement, Mr Taylor argued “it’s a pretty strange definition of happy when you’ve had to settle a defamation claim for seven figures in costs”.
He said: “Steve is never anything other than certain in himself and of his own position, but I think he’s got it wrong – basic facts were not checked.”