Wiltshire MP demands action over Thames Water failings
Sarah Gibson has tabled a motion calling for a Special Administration to be put in place
A Wiltshire MP is demanding Government action to take control of Thames Water and protect customers living in Wiltshire.
Sarah Gibson, who represents Chippenham, Calne, Lyneham, Corsham and Royal Wootton Bassett, has tabled a Parliamentary Motion calling for the company to be placed into Special Administration.
The Liberal Democrat says her constituents have "had enough" of constant leaks, rising bills, and a lack of communication and accountability, while bonuses continue to be paid to executives.
Ms Gibson said: "Families and businesses are paying more and getting less while leaks run for days and updates are patchy at best. It is indefensible that customers’ money is being siphoned into debt repayments and executive bonuses instead of repairing pipes and safeguarding our rivers.”
She's calling for "decisive action" to aid the struggling organisation. "Special Administration would allow debt to be written down, put customers first, and get investment flowing into the crumbling infrastructure our communities rely on.”
She's also previously joined calls for Ofwat, the water company regulator, to be scrapped and for a more robust watchdog to be created - something the Government has told us it plans to do.
Ms Gibson's motion highlights that around a third of customers bills are spent on servicing the debts of Thames Water, which totals around £20 billion, while £23 billion of assets require urgent repair action.
Her call has received backing from several Liberal Democrat MPs, including South Cotswold's representative, Dr Roz Savage.
Ms Gibson says this is about basic safety and fairness.
She said: "Wiltshire residents deserve clean, reliable water, transparent communication and a fast alternative supply when things go wrong. If ministers are serious about protecting 16 million Thames Water customers, they will put the company into Special Administration now and get on with replacing Ofwat with a stronger regulator that can actually hold this water companies to account.”
Special Administrator would hold back improvements, says Thames Water
Thames Water insists supporting customers with paying bills and investing in services is important to it, but says a Special Administrator would hamper it's plans to make improvements.
A Thames Water spokesperson said: "For us to continue to deliver billions of litres of clean water and take wastewater away from millions of homes, it’s vital that we invest in our network and infrastructure over the next five years.
“A Special Administrative Regime (SAR) doesn’t fix Thames Water’s problems. It will delay the delivery of improvement for our customers and the environment. It will be disruptive, add risk and uncertainty, increase costs, hinder our operational turnaround and does not fix the balance sheet.
"In addition, SAR does not change the regulatory requirements on the business, and any exit from a SAR would require a regulatory landscape that supports investment.
“The Court process earlier this year included evidence that both our economic regulator and the Company Pension Trustees have outlined their concerns of a special administration.”
The company says it offers "comprehensive support" to customers struggling to pay bills, and that it's rated among the best in the sector in this area.
We're told the organisation is aiding almost half a million in paying bills, with one in 10 households likely to be in receipt of support by 2030.
The spokesperson added: “We would encourage any customer that is concerned about their ability to pay to reach out to us so we can assess the right package of support for their circumstances.
“We are focussed on working with London & Valley Water consortium and all stakeholders to finalise a holistic market-led solution that is deliverable, will return Thames Water to an investment grade credit rating and benefit customers, the environment, taxpayers and the UK economy."