Thames Water investors say temporary nationalisation would slow its recovery

Investors in Thames Water have told the Labour government that a temporary nationalisation of the embattled company would slow its turnaround, after calls from Andy Burnham to put key utilities under public control . As Keir Starmer’s grip on power appeared to be fading, the Greater Manchester mayor suggested at the weekend that the renationalisation of water and energy would form part of his policy agenda should he become prime minister. Thames Water will run out of money by November without new investment, but says it is on the brink of agreeing a rescue deal led by creditors with the water regulator, Ofwat. It would require six weeks of consultation over the summer and then about a month to consider responses before it can go ahead. Without a deal, the company could be placed in a “special administration regime” under which a government-appointed administrator takes charge – a process regarded as a form of temporary nationalisation. The London & Valley Water consortium, a group of Thames Water creditors involved in its rescue deal, said such an approach would make fixing the struggling company harder. “Thames Water urgently needs £10bn to stabilise the company, fund significant improvements for customers, clean up local rivers and achieve full compliance as quickly as possible,” the group said in a statement. “With a highly credible market solution ready to implement, creating further delay with special administration is not the right answer. …