Guildford’s MP Says High Court Decision ‘Just Prolonging the Death of Failing’ Thames Water

Published on: 20 Feb, 2025
Updated on: 20 Feb, 2025

By Martin Giles

Guildford’s MP has spoken out angrily following the High Court decision to approve Thames Water’s additional £3 billion “lifeline” loan from creditors.

Thames Water argued that without it, the company would run out of money in March.

Zöe Franklin MP

MP Zöe Franklin said: “Thames Water continues to fail its customers throughout the Guildford constituency. It already has debts of around £19 billion; adding a further £3 billion to its liabilities is just reckless. This is just prolonging the death of a failing company, at our expense.

“The company has already been borrowing more money, just to cover the interest payments on what it already owes. This is unsustainable.”

Ms Franklin claims that up to a third of our water bills is used to pay interest on its debts and the interest on the extra £3 billion at  9.75 per cent will cost £300 million over the next two and a half years adding £250 a year to an average water bill.

She continued: “Since privatisation in 1989, Thames Water watched its debts pile up, while senior executives were paid bonuses of hundreds of thousands of pounds.

“For years, Thames Water has failed its customers by not fixing infrastructure that isn’t fit for purpose, while paying dividends to shareholders.

“It is polluting our waterways with raw sewage … profit has been prioritised over the environment.”

“Thames Water is not a functioning company. The Liberal Democrats have urged the government to act before it’s too late. The only way to stop Thames Water’s debt doom loop is to put it under Special Administration, to wipe out much of the company’s debt and the burden it places on its customers and the taxpayer.”

Thames Water serves around 15 million customers with water supply and sewage treatment including Guildford.

The supplier serves about a quarter of the UK’s population, mostly across London and parts of southern England, and employs 8,000 people.

Since the dire state of the company’s finances first emerged about 18 months ago, the government has been on standby to put Thames Water into special administration.

Regardless of what happens to the company in the future, water supplies and waste services to households will continue as normal.

Chris Weston, the CEO of Thames Water, responding to questions and criticisms at a public meeting in April 2024.

Thames Water chairman Sir Adrian Montague said the ruling marked a “significant milestone” for the company while chief executive Chris Weston said it put “our business on a firmer financial footing”.

The water regulator, Ofwat, said Thames Water remained “subject to our turnaround oversight regime and safeguards are in place to ensure that services to customers are protected”.

Last week, Ofwat began an enforcement case against Thames Water for failing to deliver more than 100 environmental improvement schemes on time.

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