Liberal Democrat MPs are reportedly set to call for Thames Water to be placed into special administration in order to secure water and sewage services for its 15 million customers.
As per the Guardian, Lib Dems’ Treasury spokesperson Sarah Olney will call for the embattled supplier to be wound up under recently introduced legislation in a Parliamentary debate on Friday.
“Thames Water is no longer a functioning company,” she commented ahead of the debate.
“The government has a choice: either bail them out with taxpayer money or put the company under new ownership to steady the ship.”
The Lib Dems have become the first mainstream party to call for such measures as a result, with Thames Water currently seeking £2.5 billion by the end of the decade to stay solvent - a target it hopes to meet by hiking consumer bills.
“So far this government has watched from the sidelines as asset strippers run Thames Water into the ground,” Olney added.
“Thames Water bosses have been profiteering off sewage dumping for years, and this must be the end of the line for them.”
Highly-indebted Thames Water appeared to teeter on the verge of collapse last summer, after high interest rates saw its servicing costs skyrocket.
Shareholders since agreed a rescue package, though a £190 million loan due in April has prompted further concern over the London supplier’s financial health.
“The final straw was this week, when Thames Water bosses refused to stump up the cash for new sewage investments,” Olney continued, referencing the firm’s decision not to commit extra funds to an industry-wide scheme to address sewage pollution.
Such a move to take Thames Water into administration could be triggered by regulator Ofwat or the secretary of state under recently updated legislation designed to ensure supply to households.
“Water companies are commercial entities and we do not comment on the financial situation of specific companies as it would not be appropriate,” a government spokesperson said.
“We prepare for a range of scenarios across our regulated industries – including water – as any responsible government would.”