Thames Water crisis: CEO quits and Whitehall draws up collapse plans
Today is Wednesday, June 28, 2023 at 6:44 am. Note: The given statement is already written in clear and straightforward English. It can't be heavily paraphrased without altering the meaning.
Reports suggest that various government departments and the water regulator are working together to develop alternative measures in case Thames Water fails.
The shocking disclosure, which was initially disclosed by Mark Kleinman from Sky News, occurred on the exact day that CEO Sarah Bentley resigned suddenly - and the company declined to provide any reasoning behind her departure.
According to other sources, Thames Water has enlisted the help of Alix Partners, a consulting firm specializing in management, to guide them through their efforts to improve. Additionally, they are seeking support from shareholders by requesting a financial boost of £1bn.
According to reports, the company has a debt burden of approximately £14 billion.
If Whitehall is required to intervene, it is anticipated that the company would be temporarily taken over by the government through a specific administrative process similar to what was done for Bulb, the energy company, in 2021.
The ownership of Thames Water is intricate, but its stakeholders consist of various pension funds from the UK and abroad, along with the sovereign wealth fund of China.
Bentley’s time in office has been filled with turmoil, as wastewater leaks into rivers and lakes have drawn continuous disapproval.
Thames Water discharged concentrated sewage into the water bodies of the southeastern region on over 8,000 occasions during the year 2022.
Bentley recently announced that she would forgo her bonus due to the shortcomings, but simultaneously received a salary increase, nullifying any negative impact on her earnings.
The company has also faced harsh criticism for its terrible record of water leakage, as 24 percent of the water it provides is lost due to leaks.
DEFRA, Ofwat, and Thames Water did not answer or reply to requests for comments from Sky News.
