Updated
Updated · Bloomberg · Jun 10
Starmer Leadership Threat Clouds Thames Water Deal as Ofwat Board Stays Deadlocked
Updated
Updated · Bloomberg · Jun 10

Starmer Leadership Threat Clouds Thames Water Deal as Ofwat Board Stays Deadlocked

2 articles · Updated · Bloomberg · Jun 10

Summary

  • Ofwat’s board remains deadlocked over Thames Water’s future, leaving the utility’s rescue deal in deeper doubt, according to a person familiar with the matter.
  • Keir Starmer’s expected leadership challenge in the coming weeks has complicated that decision by raising the prospect of a change in prime minister during a critical phase for the company.
  • Next week’s special election could sharpen the risk: if Greater Manchester Mayor Andy Burnham wins, he is expected to trigger the challenge.
  • Burnham has said he wants to bring Thames Water — the UK’s biggest water and sewerage supplier — into public ownership, adding political uncertainty to the regulator’s deliberations.

Insights

Could a single by-election determine whether the UK’s largest water company is saved by private lenders or the public purse?
As a political challenger vows nationalization, will regulators approve a private rescue for Thames Water that allows it to bend pollution rules?