Thames Water customers have been assured that “absolutely nothing” will happen to their bills or supply, as the heavily indebted firm scrambles to raise cash from investors to prevent collapse.
Health minister Neil O’Brien told Sky News: “They are still in the process of finding further resources from their own shareholders and that’s the first place they should look to, obviously.
“Of course the government does have contingency plans if this does become a problem.”
Mr O’Brien refused to say if the utility firm could be taken into public ownership as a last resort, insisting he was “not able” to reveal what the contingency plans are.
But in a message to Thames Water customers he said that whatever the outcome: “Absolutely nothing is going to happen in terms of either their bills or their access to water, we have contingency plans – like we do in all of these network utilities – to manage any difficult situations.”
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Several reports on Thursday suggested concerns about Thames Water’s finances had now broadened to other firms in the industry.
Industry regulator Ofwat responded: “Over the last day or so, there has been a lot of commentary about financial resilience in the water sector with considerable focus on Thames Water in particular.”
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It added: “Overall, the sector is continuing to attract international capital and is especially attractive to long term investors such as pension funds. Indeed, there has been an additional equity injection of around £2bn since 2020, with companies acting to strengthen their financial position.
“Ofwat will continue to keep companies’ financial resilience under close scrutiny and work with companies to ensure they take action to ensure that they have the financial backing to deliver for customers and the environment.”
On Wednesday, Thames Water said it was working “constructively” with shareholders to secure extra cash.
The company, which serves 15 million households, said that it needs “further equity funding” on top of the £500m it raised just three months ago.
The statement came after 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 if it collapses.
Rebecca Pow, the water minister, did not say how much a government bailout could cost when pressed on the matter by Labour in the Commons.
She insisted the water sector as a whole is “financially resilient” and the government is confident that Ofwat is “working closely with any company that would be facing financial stress”.
Kemi Badenoch, the business secretary, admitted she is “very concerned” by the situation.
Thames Water – owned by a consortium of pension funds and sovereign wealth funds – has come under pressure in recent years over its poor performance in tackling leaks and sewage contamination, while facing criticism for handing out big rewards to top bosses and shareholders.
On Tuesday, Thames Water chief executive Sarah Bentley stepped down with immediate effect amid mounting worries over the financial stability of the company and criticism of her £1.6m pay packet despite the company’s environmental performance.
Syria has carried out pre-emptive operations targeting Islamic State cells – arresting 71 people during 61 raids.
Explosives and weapons were seized, with the interior ministry revealing they were working on “precise” intelligence information.
“Many” of those detained were wanted criminals, with forces obtaining evidence that linked them to terrorist activities.
A statement added that the operation was part of “ongoing national efforts to combat terrorism and confront plots targeting the country’s security and citizens”.
The raids come as Syrian President Ahmed al Sharaa travels to Washington for a meeting with Donald Trump, where he will join a coalition against IS.
Meanwhile, the US is preparing to establish a military presence in Damascus to enable a security pact that is being brokered between Syria and Israel.
According to the Syrian Arab News Agency, officials intercepted information that suggested Islamic State was planning to launch new attacks.
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Interior ministry spokesman Nour al Din al Baba told al Ekhbariya: “The current major threat lies in IS’ attempts to reconstitute itself and recruit new members, particularly among the youth.”
Since then, al Sharaa’s transitional administration has been attempting to restore security, introduce economic reforms, and cooperate with international partners.
On Friday, the UK and US removed sanctions against al Sharaa – following in the footsteps of the UN Security Council.
The State Department said this was “in recognition of the progress demonstrated by the Syrian leadership”, including work to counter narcotics and eliminate chemical weapons.
Al Sharaa had faced a travel ban, asset freeze and an arms embargo for well over a decade because he was previously affiliated with al Qaeda.
Israeli troops in Gaza have received the remains of another hostage.
They have now been taken to the National Institute for Forensic Medicine to be examined.
If it is confirmed that they belong to a hostage, this would mean there are five bodies left to be returned under the terms of a ceasefire that began on 10 October.
Israel has also released the bodies of 285 Palestinians – but this identification process is harder because DNA labs are not allowed in Gaza.
Last night’s transfer is a sign of progress in the fragile truce, but some of the remains handed over in recent weeks have not belonged to any of the missing hostages.
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October: Heavy machinery enters Gaza to clear rubble
At times, Israel has accused Hamas of violating the agreement – however, US President Donald Trump has previously acknowledged conditions on the ground in Gaza are difficult.
Meanwhile, UN officials have warned the levels of humanitarian aid flowing into the territory fall well short of what Palestinians require.
Deputy spokesperson Farhan Haqq said more than 200,000 metric tons of aid is positioned to move in – but only 37,000 tons has arrived so far.
Earlier on Friday, hundreds of mourners attended the military funeral of an Israeli-American soldier whose body was returned on Sunday.
Image: Omer Neutra was an Israeli-American soldier. Pic: AP
Captain Omer Neutra was 21 when he was killed by Hamas militants who then took his body into Gaza following the October 7th attacks.
Admiral Brad Cooper, who heads up US Central Command, said during the service: “He is the son of two nations.
“He embodied the best of both the United States and Israel. Uniquely, he has firmly cemented his place in history as the hero of two countries.”
His mother Orna addressed her son’s coffin – and said: “We are all left with the vast space between who you were to us and to the world in your life and what you were yet to become. And with the mission to fill that gap with the light and goodness that you are.”
Image: IDF troops carry the coffin of hostage Omer Neutra. Pic: AP
In other developments, Turkish prosecutors have issued arrest warrants for Prime Minister Benjamin Netanyahu and 36 other Israeli officials on charges of carrying out “genocide” in Gaza.
They have been accused of crimes against humanity – but the move is highly symbolic since these officials were unlikely to enter Turkey.
Foreign minister Gideon Saar dismissed the warrants, and said: “Israel firmly rejects, with contempt, the latest PR stunt by the tyrant Erdogan.”
In Soviet times, Western observers would scrutinise video footage of state occasions, like military parades on Red Square, to try to learn more about Kremlin hierarchy.
Who was positioned closest to the leader? What did the body language say? Which officials were in and out of favour?
In some ways, not much has changed.
The footage present-day Kremlinologists are currently pouring over is from Wednesday’s landmark meeting of Russia’s Security Council, in which Vladimir Putin told his top officials to start drafting proposals for a possible nuclear weapons test.
It was an important moment. Not one you’d expect a trusted lieutenant to miss. But Sergei Lavrov, Russia’s veteran foreign minister, was conspicuously absent – the only permanent member of the Council not present.
According to the Russian business daily, Kommersant, his absence was “coordinated”.
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Image: US President Donald Trump meets with Russia’s President Vladimir Putin in Alaska. Pic: AP
Image: Sergey Lavrov and Marco Rubio in Alaska. Pic: AP
That episode alone would have been enough to raise eyebrows.
But coupled with the selection of a more junior official to lead the Russian delegation at the upcoming G20 summit (a role Lavrov has filled in recent years) – well, that’s when questions get asked, namely: Has Moscow’s top diplomat been sidelined?
The question has grown loud enough to force the Kremlin into a denial, but it’s done little to quell speculation that Lavrov has fallen out of favour.
Image: Russian foreign minister Sergei Lavrov. File pic: Reuters
Rumours of a rift have been mounting since Donald Trump called off a planned summit with Putin in Budapest last month, following a phone call between Lavrov and US secretary of state Marco Rubio.
According to the Financial Times, it was Lavrov’s uncompromising stance that prompted the White House to put the summit on ice.
Conversations I had with diplomatic sources here at the time revealed a belief that Lavrov had either dropped the ball or gone off-script. Whether it was by accident or by design, his diplomacy (or lack of it) torpedoed the summit and seemingly set back a US-Russia rapprochement.
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September: Anyone downing aircraft in Russian airspace will ‘regret it’
That would’ve angered Putin, who is keen to engage with Washington, not only on Ukraine but on other issues, like nuclear arms control.
More importantly, perhaps, it made the Russian president appear weak – unable to control his foreign minister. And Putin is not a man who likes to be undermined.
Football fans will be familiar with Sir Alex Ferguson’s golden rule of management: Never let a player grow bigger than the club. Putin operates in a similar fashion. Loyalty is valued extremely highly.
Image: Lavrov meets with his Iranian counterpart Mohammad Javad Zarif in 2015. Pic: Reuters
Image: North Korea’s Kim Jong Un and Lavrov meet in Pyongyang in 2023. Pic: AP
Image: Lavrov and Chinese counterpart Wang Yi meet in Indonesia in 2022. Pic: Reuters
If Lavrov has indeed been sidelined, it would be a very significant moment indeed. The 75-year-old has been the face of Russian diplomacy for more than two decades and effectively Putin’s right-hand man for most of the Kremlin leader’s rule.
Known for his abrasive style and acerbic putdowns, Lavrov has also been a vociferous cheerleader for Russia’s invasion of Ukraine.
And in the melee that immediately followed the presidents’ press statements at the summit, I remember racing over to Lavrov as he was leaving and yelling a question to him through the line of security guards.
He didn’t even turn. Instead, he just shouted back: “Who are you?”
It was typical of a diplomatic heavyweight, who’s known for not pulling his punches. But has that uncompromising approach finally taken its toll?