Thames Water: Contingency Plans

Opened the debate

Since 2020, Thames Water has dumped over 72 billion litres of raw sewage into rivers in London. It has also accrued billions of pounds of debt and failed to provide basic services to nearly a quarter of the country it supplies, including Richmond Park. Despite this, executives have paid themselves £8 million in bonuses. Sarah Olney received dozens of reports from constituents about Thames Water’s negligence, such as a burst pipe leaving over 1,200 homes without central heating or hot water for five days and delays caused by unattended burst mains. Thames Water plans to build a pipeline across a nature reserve that will threaten a rare ecosystem and subject residents to years of construction work. Constituents are facing rising bills due to the company's mismanagement of finances, with some seeing their bills rise by over 60% between 2020 and 2024. Thames Water is lobbying for further bill increases and lower fines despite already causing significant environmental damage. Olney called on the Government to publish its contingency plan and to place Thames Water into special administration to ensure it functions again for public benefit.

Government Response

Minister Mark Spencer congratulated Sarah Olney and reassured the House that water companies are regulated to ensure they deliver performance and environmental outcomes. The Government is committed to transforming management of the water system, with water companies investing £7.1 billion in environmental improvements between 2020 and 2025. Ofwat monitors financial positions and takes action when needed to improve resilience. A range of options are available to water companies, including special administration if a company becomes insolvent or breaches its statutory duties. The existence of the Water Industry Act 1991 ensures that customers will continue to receive essential services even in times of distress. Spencer did not want to be drawn into specific cases due to market sensitivities but highlighted that regulations exist for all vital sectors. He assured Ofwat’s close work with water companies and their investors, providing reassurance about the transparent plan prepared by the Government.