BT pension scheme lost £300m on Thames Water stake

The BT pension scheme lost £300m after writing off its holding in Thames Water , the UK’s largest water company that is buckling under a £20bn debt pile. The loss came after the telecoms company’s decision to write off its 8.7% equity stake in Thames in 2024, according to a presentation to analysts captured in a video , in news first reported by the Financial Times . BT also said the pension scheme had sold its debt in the utility to avoid a further write-down, without giving details. Shan Abdullah, who leads the pensions risk team at the telecoms company, said: “The equity stake in Thames Water has been written down, which I believe was about £300m. The scheme also had debt exposure to Thames Water, which was sold off prior to needing to be written down.” The scheme first invested in Thames in 2012 when it acquired a 13% stake, and sold 4.36% of it in 2017. It now has no exposure to Thames bonds. “The BT pension scheme is well diversified, so any challenges from a single investment do not materially impact the overall portfolio,” the telecoms company said. Thames is moving closer towards public ownership, after the UK environment secretary last week objected to a £10bn rescue proposal because it would place an “undue burden” on consumers. The regulator Ofwat was close to a deal under which Thames would avoid any new fines over sewage leaks for four years in return for a cash injection into the business from its creditors, who would take over the company. …