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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1:45
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.”
But what about his style ‘prince’? Some want that ditched too.
It’s a complicated but not impossible process. Andrew could, of course, just stop using it voluntarily.
Some want him to give up his home, too. For a non-working royal, the stately Royal Lodge, with its plum position on the Windsor Estate, is an uncomfortable optic.
With the reputation of the monarchy at risk, William does not want to appear weak. He’s putting loyalty to “the firm” firmly above his familial relationships.
Prince Andrew has always strongly denied the allegations, and restated on Friday: “I vigorously deny the accusations against me”. Sky News has approached him for comment on the fresh allegations set out in the Mail on Sunday.
But with Virginia Giuffre’s tragic death and posthumous memoir due out on Tuesday, Buckingham Palace will be braced for more scandal.
When Andrew gave up his titles, there was certainly a sense of relief.
There is now a sense of dread over what else could emerge.
Sky News’ royal commentator has explained why Prince Andrew has not given up being called a prince – while another expert has said “the decent thing” for him to do would be “go into exile” overseas.
Andrew announced on Friday that he would stop using his Duke of York title and relinquish all other honours, including his role as a Royal Knight Companion of the Most Noble Order of the Garter.
However, he will continue to be known as a prince.
Royal commentator Alastair Bruce said that while Andrew’s other honours and titles were conferred to him later in life, he became a prince when he was born to Elizabeth II while she was queen.
He told presenter Kamali Melbourne: “I think […] that style was quite special to the late Queen,” he said. “And perhaps the King, for the moment, thinks that can be left alone.
“It’s a matter really for the King, for the royal household, perhaps with the guidance and advice of government, which I’m sure they are taking.”
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Who pushed Andrew to drop his titles?
Since Andrew’s announcement, there has been speculation over whether any further measures will be taken – and one author has now called for him to “go into exile”.
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Andrew Lownie, author of The Rise And Fall Of The House Of York, said: “The only way the story will go away is if he leaves Royal Lodge, goes into exile abroad with his ex-wife, and is basically stripped of all his honours, including Prince Andrew.”
Royal Lodge is the Windsor mansion Andrew lives in with his ex-wife, Sarah Ferguson, who has also lost her Duchess of York title.
Image: Andrew and his former wife continue to live on the Windsor estate. Pic: Reuters
Mr Lownie continued: “He makes out he’s an honourable man and he’s putting country and family first. Well, if he is, then the optics look terrible for the monarchy. A non-working royal in a 30-room Crown Estate property with a peppercorn rent.
“He should do the decent thing and go. And frankly, he should go into exile.”
Mr Lownie added if the Royal Family “genuinely want to cut links, they have to put pressure on him to voluntarily get out”.
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Windsor’s take on Prince Andrew
Andrew’s decision to stop using his titles was announced amid renewed scrutiny of his relationship with paedophile Jeffrey Epstein, and fresh stories linked to the late Virginia Giuffre.
Ms Giuffre, who was trafficked by Epstein, alleged she was sexually assaulted by Andrew on three occasions – which he has always vigorously denied.
Bereaved families whose loved ones took their own lives after buying the same poison online have written to the prime minister demanding urgent action.
Warning: This article contains references to suicide
The group claims there have been “multiple missed opportunities” to shut down online forums that promote suicide and dangerous substances.
They warn that over 100 people have died after purchasing a particular poison in the last 10 years.
Among those who have written to Downing Street is Pete Aitken, whose daughter Hannah was 22 when she took her own life after buying the poison from a website.
Hannah was autistic and had ADHD. She was treated in six different mental health hospitals over a four-year period.
He said: “Autistic people seem to be most vulnerable to this kind of sort of poison and, you know, wanting to take their lives.”
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Pete Aitken speaking to Sky News
Sky News is not naming the poison, but Hannah was able to buy a kilogram of it online. Just one gram is potentially fatal.
“There’s this disparity between the concentration required for its legitimate use and that required for ending your life. And it seems quite clear you could make a distinction,” Mr Aitken said.
Analysis from the Molly Rose Foundation and the group Families and Survivors to Prevent Online Suicide Harms says at least 133 people have died because of the poison. It also says coroners have written warnings about the substance on 65 separate occasions.
The report accuses the Home Office of failing to strengthen the regulation of the poison and says not enough is being done to close dangerous suicide forums online.
Lawyers representing the group want a public inquiry into the deaths.
In a joint letter to the prime minister, the families said: “We write as families whose loved ones were let down by a state that was too slow to respond to the threat.
“This series of failings requires a statutory response, not just to understand why our loved ones died but also to prevent more lives being lost in a similar way.”
The group’s lawyer, Merry Varney, from Leigh Day, said: “The government is rightly committed to preventing deaths through suicide, yet despite repeated warnings of the risks posed by an easily accessible substance, fatal in small quantities and essentially advertised on online forums, no meaningful steps have been taken.”
Image: Hannah’s dad is one of the family members to have signed the letter
A government spokesperson said: “Suicide devastates families and we are unequivocal about the responsibilities online services have to keep people safe on their platforms.
“Under the Online Safety Act, services must take action to prevent users from accessing illegal suicide and self-harm content and ensure children are protected from harmful content that promotes it.
“If they fail to do so, they can expect to face robust enforcement, including substantial fines.”
They added that the position is “closely monitored and reportable under the Poisons Act, meaning retailers must alert authorities if they suspect it is being bought to cause harm”.
“We will continue to keep dangerous substances under review to ensure the right safeguards are in place,” they said.
Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK.