Thames Water boss warns of ‘unfortunate truth’ bills will have to rise to fund infrastructure improvements
A boss at troubled Thames Water has warned that bills will have to go up across the country if the industry is to meet its investment challenges despite anger over its business models .
Interim joint chief executive Cathryn Ross told a committee of MPs that while Thames was currently prevented from hiking bills under the industry’s existing price control period, Britain’s biggest water supplier would seek more from customers to meet its performance obligations from 2025.
Those included replacing Victorian era pipe networks and building for climate change threats.
She described an “unfortunate truth” that households would have to foot bills for infrastructure improvements amid a backlash from the politicians over sewage discharges and its £14bn debt pile.
Ms Ross, and the water regulator Ofwat, insisted under questioning that no companies are allowed to charge households more to help service their debt obligations.
They have been made more difficult in recent times by rising interest rates, energy and chemicals bills.
Discussions over the size of bills will begin next year ahead of the new pricing period as they can rise by an inflation-linked level subject to regulatory approval.
Sky News revealed last month that the government was drawing up contingency plans in the event Thames Water collapsed as it rushed to agree a new turnaround plan and secure more money from shareholders.
Iain Coucher, who chairs Ofwat, backed assertions by the company earlier this week that it had raised enough to ensure that no temporary nationalisation would be needed in the short term.
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Thames Water secures additional £750m investment
“We don’t think it’s likely at the moment,” he said.
“At this point in time, we’re confident the shareholders will inject some cash but the problems at Thames are deep rooted… the problems at Thames are a function of cost overruns and poor performance and they need to fix that as quickly as possible,” he insisted.
Ms Ross admitted that Thames was currently prevented from imposing the charges it would have liked to due to the fact it was under an Ofwat penalty over its past performance.
Thames has paid no dividends since 2017.
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Water expert: ‘Get rid of this lot’
New chairman Sir Adrian Montague, who called for a partnership with the regulator and pledged improved communication with customers, said he was “surprised” by the sudden departure of former CEO Sarah Bentley last month, suggesting the pressure relating to the turnaround effort had proved too great,
“I think she had got to the point perhaps of feeling that the burdens of office were considerable and it was an entirely personal decision, with which I think we had no involvement.”
Alastair Cochran, the other interim joint chief executive of Thames, told the Environment, Food and Rural Affairs Committee: “I was brought in with a whole new executive team to turn around this business.
“This business matters – it serves 15 million customers. Our job collectively is turn this business around.
“We know performance both operationally and financially hasn’t been where it needs to be. We’ve been very transparent about that.
“We are very focused on turning this business around, making it sure it is financially resilient and delivers a better service for customers, and improves both its operational and environmental performance.”
Assisted dying could become legal in England and Wales after the bill was backed by MPs in a historic vote.
Kim Leadbeater’s Terminally Ill Adults (End of Life) Bill received 330 yes votes compared to 275 noes at its second reading in the House of Commons – a majority of 55.
Politics Live: MPs voting on historic assisted dying legislation
The bill would allow adults who are terminally ill with just six months left to live to request medical assistance to end their lives.
Today’s result means the legislation will now progress to the committee stage for scrutiny, with the Lords also to be given opportunities to express their views on the measure before it potentially becomes law.
MPs were given a free vote – meaning they could side with their conscience and not along party lines, with the government staying neutral on the matter.
The division list showed Prime Minister Sir Keir Starmer backed the proposal, as did Chancellor Rachel Reeves.
But other cabinet members like Health Secretary Wes Streeting and Justice Secretary Shabana Mahmood voted against the bill, having previously warned about vulnerable people being coerced and of a “slippery slope of death on demand”.
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MPs debate assisted dying
The vote came after a five-hour debate in the chamber, which drew emotional arguments on both sides.
Conservative former minister Andrew Mitchell revealed he changed his mind on assisted dying after finding himself with “tears pouring down my face” on hearing the stories of constituents whose loved ones had died “in great pain and great indignity”.
On the other side of the argument, veteran Labour MP Diane Abbott said assisted dying could result in sick people “feeling like a burden” on society, adding: ” I can imagine myself saying that in particular circumstances.”
She warned: “If this bill passes, we will have the NHS as a fully-funded 100% suicide service but palliative care will only be funded at 30% at best.”
Bill about ‘choice and dignity’
Opening the debate on the topic, Labour backbencher Ms Leadbeater said the bill was about giving dying people “choice, autonomy, and dignity” – saying the current law was “failing” them.
Kim Leadbeater: PA
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She has insisted her bill contains “the most robust safeguards” of any assisted dying legislation in the word.
This includes two independent doctors having to approve the decision, followed by a high-court judge, with the person having to administer the drugs themselves.
The legislation also includes a maximum 14-year prison sentence for anyone who coerces someone into requesting assisted dying or taking the medicine.
Speaking to Sky News’ political editor Beth Rigby after the vote, an emotional Ms Leadbeater said she was “incredibly proud” of the result and parliament must now “take on board everything that’s been discussed in the chamber”, including the state of palliative care and the rights of disabled people.
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