MPs recall Thames Water bosses over £2.5m bonuses
Regulator says April payouts fall outside new bonus ban rules
Thames Water executives are being recalled by MPs to explain £2.5 million in bonuses paid under a controversial retention scheme and the collapse of a £4 billion rescue deal.
The Environment, Food and Rural Affairs Committee will question company bosses on July 15 after Ofwat confirmed the April payments cannot be recovered.
The bonuses, awarded to non-board senior staff on April 30, are not covered by new rules that allow regulators to block such payouts.
The payments form part of an £18.5 million scheme aimed at retaining key staff while Thames Water seeks urgent investment. The firm paused the scheme in May after criticism from MPs.
Thames Water, which serves 16 million customers, across Greater London and the Thames Valley is saddled with billions in debt and had been in talks with private equity firm KKR over a potential £4 billion rescue.
But KKR pulled out last month, reigniting fears the company could face temporary nationalisation if another deal fails.
Committee chair Alistair Carmichael has demanded board meeting minutes related to the failed talks, but Thames Water refused, warning disclosure could undermine live negotiations. Carmichael dismissed an offer of a private briefing as inadequate.
The committee has also written to KKR requesting clarity on its decision to walk away from the deal. The firm has not publicly explained its withdrawal.