Clive Jones rejects High Court's bailout of Thames Water as customers continue to suffer

The High Court’s decision to approve the bailout, at swingeing interest rates, will merely add to the burden on bill-payers in the long term. Despite already having £16bn in debt, Thames Water will now take on another £3bn in debt with steep interest rates. Thames Water will continue to limp on until it needs bailing out again, and creditors will continue to gain. 

Thames Water expects bill-payers will bear the cost of this expensive and short-term bail out and is appealing to OFWAT to increase bills above the 35% over the next 5 years that is being allowed, claiming that the increase must be 53% instead. Wokingham’s residents' bills will have covered the cost of paying off Thames Water’s debts. 

The Liberal Democrats have called for the Government to act and to put Thames Water under Special Administration. The company’s debt must be wiped out and the burden must be reduced, or else customers, taxpayers and the environment will continue to suffer.  

Clive Jones, the MP for Wokingham, said: 

“Tuesday’s ruling from the High Court brings into sharp focus that Thames Water, with its huge debts, cannot be trusted to deliver for bill-payers. 

“Thames Water gaining £3bn more in debt will mean that customers, and my constituents, will being paying off the company’s debts through increased bills. 

“The Government must put Thames Water into Special Administration now, rather than delaying the company’s inevitable collapse and increasing the burden placed upon customers.”

• For further information on the High Court’s ruling yesterday, please find the BBC article here: https://www.bbc.co.uk/news/articles/cg7z7ddmd5eo  
• For more information about what Lib Dems MPs are calling for, please find this press release from Charlie Maynard MP here: https://www.libdems.org.uk/press/release/thames-water-lib-dem-mp-urges-high-court-to-reject-proposed-restructuring