Thames Water - comment

Another rabbit is out of the bag with Thames Water submitting a new business plan to Ofwat today which shows a 56% increase in bills over the next five years for consumers.  The government has got a plan B ready which is the nationalisation / special administration scenario code named Project Timber. Project Timber envisages the government taking back control of Thames Water and then putting it into an arms-length entity. Under the plan, current creditors would take a 35 per cent to 40 per cent haircut with the rest of the debt being taken into the public finances and split Thames Water into London Water and Thames Valley Water. We will know by the 12th June 2024 regarding Ofwat’s decision on how they wish to proceed with the plan. Tick tock….