Thames Water: Lib Dem MP urges High Court to reject proposed restructuring

EMBARGO: 14.00 Monday 3rd February

Today (3rd February), Liberal Democrat MP Charlie Maynard has urged the High Court in a witness statement not to let Thames Water (TW) take on an extra £3bn in debt. 

Charlie Maynard (Liberal Democrat MP for Witney) is urging the court to reject TW’s proposed restructuring plan. The plan, if accepted, would allow the failing water company to take on another £3bn of debt - adding to their existing debt of more than £16bn. 

Charlie has submitted a witness statement to the court, urging them to reject this plan because it is not in the public’s or customers’ interest.

As a long-time campaigner for better water regulation, and now as Member of Parliament for a constituency served by TW, Charlie has heard concerns from many customers and water campaigners about the impact this extra debt will have. 

Charlie is seeking to represent the concerns of TW’s 16 million customers - who would otherwise have no voice in court. Ultimately, it is the customers who will bear the cost of this debt through even higher bills.

The Liberal Democrats are instead proposing that the company should be put into special administration. This would enable TW's debt to be largely written off, and allow for the company to be restructured to become more financially sustainable. 

Commenting, Liberal Democrat MP for Witney Charlie Maynard said: 

“Successive governments have watched on as Thames Water has plunged themselves into billions of pounds of debt. Thames Water is running out of money, it is operating in breach of its licence, it is unable to pay its debts and its customers are suffering for it.

“The deal the creditors are pushing for serves their interests only; it is a short term fix at the expense of the company, Thames Water customers and UK taxpayers. 

“Households in my constituency and so many others have no choice but to pay towards Thames Water’s debts in their bills. Around a third of customer bills are already being spent on paying down the interest on the water company’s debts. This cannot continue. 

“The Liberal Democrats urge the government they must act now to put Thames Water under Special Administration, to wipe out much of the company’s debt and the burden it places.”

ENDS