Thames Water in crisis

Britain's biggest water company serves 16 million customers but is drowning in £20bn of debt and controlled by 100 hedge funds and distressed-debt investors.

MPs call for government takeover

A cross-party committee of MPs is urging ministers to break off talks with the hedge funds and instead use emergency legislation to put Thames Water under temporary public control.

Current law blocks takeover option

The special administration regime that can temporarily put failing water companies under government control cannot be triggered for Thames Water under current law because hedge funds have kept it technically solvent.

Customers have lost faith

Thames Water customers are fed up with polluted waterways, rising bills, and broken pipes losing water while supplies run low.

“Thames Water's 16 million customers have largely lost faith in it.”

Hedge funds seeking pollution relief

The London & Valley Water consortium is asking for relief from environmental fines worth up to £1bn while dragging out negotiations and collecting millions in debt interest.

Opaque consortium lacks expertise

MPs say the 100-strong group of hedge funds and distressed-debt specialists lacks the expertise to run a vital public service and operates without proper transparency.

Elliott Investment Management leads group

Elliott Investment Management, founded by Trump donor Paul Singer, is one of the leading creditors alongside Silver Point Capital, BlackRock and M&G.

Extracting value, not fixing problems

The committee says the hedge funds' investment strategy is based on extracting value through debt rather than ensuring Thames Water's long-term success and turnaround.

Consortium's £10bn investment offer

London & Valley Water says their plan will write off billions in debt, provide £10bn in new capital, and ensure no dividends are taken until the company is turned around.

Government keeps all options open

A government spokesperson said nothing is off the table when it comes to finding a solution that delivers for customers and the environment.

Turnaround will take a decade

Thames Water says fixing the company will require significant and sustained investment over ten years and needs recapitalisation to return to investment-grade credit rating.

200,000-strong petition for public ownership

A petition set up by campaigner Ash Smith of Windrush Against Sewage Pollution gathered 200,000 signatures calling for a referendum on returning the privatised water industry to public ownership.

MPs debate future of water sector

Sixty-four MPs debated the petition in parliament, reflecting growing cross-party concern about the future of Britain's privatised water industry and Thames Water's collapse.