Wokingham MP Clive Jones has condemned the £3 billion bailout of Thames Water, worsening the future burden upon bill-payers.
The Liberal Democrats have called for the company to be put into special administration. They said the High Court’s decision to approve the bailout, at swingeing interest rates, will merely add to the burden on bill-payers in the long term.
Despite already having £16bn in debt, Thames Water will now take on another £3 billion in debt with steep interest rates. He said that Thames Water will continue to limp on until it needs bailing out again, and creditors will continue to gain. Thames Water expects bill-payers will bear the cost of this expensive and short-term bail out, and is appealing to OFWAT to increase bills above the 35% over the next five years that is being allowed, claiming that the increase must be 53% instead.
Wokingham’s residents’ bills will have covered the cost of paying off Thames Water’s debts.
The Liberal Democrats have called for the Government to act and to put Thames Water under Special Administration. They believe the company’s debt must be wiped out, and the burden must be reduced, or else customers, taxpayers and the environment will continue to suffer.
Clive Jones, the MP for Wokingham, said: “Tuesday’s ruling from the High Court brings into sharp focus that Thames Water, with its huge debts, cannot be trusted to deliver for bill-payers.
“Thames Water gaining £3 billion more in debt will mean that customers, and my constituents, will be paying off the company’s debts through increased bills.
“The Government must put Thames Water into Special Administration now, rather than delaying the company’s inevitable collapse and increasing the burden placed on customers.”
