THAMES Water is reportedly subject to emergency talks between the government and a number of key stakeholders as the water provider faces mounting pressure.
It follows the resignation of chief executive officer Sarah Bentley last night, Tuesday, June 27, coming just weeks after she forewent her bonus pay for 2022-2023 along with chief financial officer Alastair Cochran.
This was however branded a “PR stunt” by Gary Carter, a national officer at GMB Union, after the Times reported that her pay had been doubled to around £1.5 million.
The provider defended the pay hike, describing it as part of a pre-agreed package which was “unrelated” to performance.
Bentley is expected to leave next week, but has said that she will continue to support her interim replacement until a new CEO is in place.
Ian Marchant, Thames Water’s chairman, thanked Bentley for her services to the company since she joined in 2020, and said she had created a “first-class executive team,” leading the “first phase” of a turnaround for the company.
“On behalf of everyone at Thames, the board wishes her every success for the future.”
It also comes less than a month after the utilites provide laid out plans which would see 25 years’ worth of structural improvements aimed at improving sustainability and resilience of infrastructure.
Thames Water is facing £14 billion in debt, and a report in the Daily Telegraph on Tuesday said that the firm was seeking to raise £1 billion from its shareholders and receiving consultation from AlixPartners.
It follows continuing scrutiny for water suppliers across the UK for increased sewage outflow and environmental impact as a result of industry practises.
Thames Water was fined around £32 million in penalties between 2017-2021 according to the Environment Agency, and received a fine of more than £50 million in 2022.
Sky News reported on the morning of Wednesday, July 28, that “preliminary” talks had begun between ministers at the Department for Environment, Food, and Rural Affairs (DEFRA), utilities regulator Ofwat, and the treasury.
The discussions are reported to centre on contingency plans which could include a “temporary nationalisation,” through a special administration regime.
Chancellor of the Exchequer Jeremy Hunt met with a number of regulators today, as well as the Competition and Markets Authority, to discuss profiteering in the sectors.
Participants in the talks have declined to comment any further.
Work and Pensions secretary Mel Stride appeared on LBC before 10am, however, and said: “Ofwat has as part of its remit a requirement to look at the resilience of the entire sector and will have been looking at and continue to look very closely at Thames Water.
“Government as well has contingency arrangements in place to cover any scenario which may play out and what I’m supremely confident of is whatever the situation is at Thames Water, the water will continue to flow.”
While he did not confirm whether there were any plans to bail out Thames Water, he explained that: “contingency plans will be well advanced and are there through time, generally, for that sector.”
CFO Alastair Cochran will now take over as interim co-chief executive, running the provider with a former executive of Ofwat, Cathryn Ross.
