Government ‘preparing for collapse of Thames Water’
According to reports, the Government is said to be getting ready for the potential downfall of a prominent water company in the nation.
According to a report by Sky News, government officials are developing alternative strategies to temporarily nationalize Thames Water, the utility company that serves areas in Kent such as Dartford.
Government authorities and Ofwat, the regulatory body for the industry, are reportedly engaging in talks regarding the potential placement of Thames Water under a special administration regime (SAR), which would essentially transfer ownership of the company to the public sector.
The Government applied the identical method in 2021 following the downfall of the energy provider Bulb.
The discussions are in the early phase, involving Ofwat, the Treasury, and the Department for Environment, Food and Rural Affairs (DEFRA), and the backup strategies might not have to be put into action.
This follows the resignation of the company's CEO, which took place yesterday without any delay, only a few weeks after she was compelled to relinquish her bonus due to the company's unsatisfactory environmental and customer achievements.
Thames Water announced that Sarah Bentley would step down from her position on the board of directors yesterday. However, she will remain involved and provide assistance to the interim replacement until a new permanent CEO is appointed.
Alastair Cochran, the top financial officer, has been appointed as the temporary co-chief executive. He will share this role with Cathryn Ross, the previous CEO of Ofwat, who recently joined the company this year.
The organization caters to a vast clientele of 15 million individuals residing in London and the surrounding areas. However, it is currently experiencing criticism due to its unsatisfactory performance in preventing leaks and sewage contamination.
Thames Water commenced an investigation recently following an incident where untreated wastewater overflowed onto a pathway close to the Holiday Inn Express located on University Way in Dartford.
On May 22nd, there was water on the pathway near a junction on the A282 road that leads to the Dartford Crossing. This water originated from the river flowing beneath the tunnel.
