Tory MP Michael Gove has said that Thames Water must “carry the can” and their customers should not suffer and pay more for their bills.
The Communities Secretary called Thames Water’s leaders a “disgrace” and that they have been “arrogant” towards their customers.
The chief executive of Thames Water has said he will not rule out increasing water bills by up to 40% for customers as the company are struggling with £15 billion of debt along with high interest payments.
Investors have pulled a £500 million funding lifeline which was expected to paid by the end of March, and Thames Water blamed Ofwat for making the business plan “uninvestible.”
Chris Weston said that if there is no funding by the end of 2025 then the company could enter into special administration, meaning that taxpayers will end up picking up the whopping bill.
Gove was asked about Thames Water by reporters, he said, “I think the leadership of Thames Water has been a disgrace. I think for years now, we have seen customers of Thames Water taken advantage of by successive management teams that have been taking out profits and not investing as they should have been.”
He added, “I have zero sympathy for the leadership of Thames Water. In my own constituency, I have seen how they have behaved in a high-handed and arrogant way towards the consumers who pay their bills.
“So the answer is not to hit the consumers, the answer is for the management team to look to their own approach and ask themselves why they are in this difficult situation, and of course the answer is because of serial mismanagement for which they must carry the can.”
The Chancellor Jeremy Hunt has said the Treasury are monitoring the situation “very carefully.”
Hunt was asked by reporters if the government will step in to support the troubled company, he said, “Our understanding is that the company is still solvent and today’s news should not have an impact on the services received by customers.
“Obviously, there are parts of the country where the service has not been up to scratch … overall we will continue to watch the situation very carefully.”
