{"id":296360,"date":"2025-06-16T04:23:40","date_gmt":"2025-06-16T04:23:40","guid":{"rendered":"https:\/\/peraltafinancing.com\/uncategorized\/uk-water-industry-needs-root-and-branch-reform-mps-say\/"},"modified":"2025-06-16T04:23:40","modified_gmt":"2025-06-16T04:23:40","slug":"uk-water-industry-needs-root-and-branch-reform-mps-say","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=296360","title":{"rendered":"UK water industry needs \u2018root and branch reform\u2019, MPs say"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<p>Stay informed with free updates<\/p>\n<p class=\"article__content-sign-up-topic-description o3-type-body-base\"><span>Simply sign up to the <!-- -->Utilities<!-- --> myFT Digest &#8212; delivered directly to your inbox.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=2b61626b-6d5f-4629-9e04-bbd4cd0f96e7&amp;concept-id=c6641511-1dc5-4c28-82d1-5b68cc47b8cf\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>The UK government should explore different models of ownership in the embattled water industry, including the potential renationalisation of privatised companies, a cross-party group of MPs said on Monday.<\/p>\n<p>In a highly critical report, the House of Commons environment, food and rural affairs committee called for \u201croot and branch\u201d reform of the sector and urged ministers to consider bringing Thames Water under temporary state control. <\/p>\n<p>\u201cWe see merits in the argument that the current models of ownership in the water industry may not be bringing about the culture the sector needs,\u201d the MPs said. <\/p>\n<p>The report comes weeks before the Independent Water Commission, a government-commissioned review, delivers its findings on the future of a sector that has been the subject of public anger over pollution and executive pay. <\/p>\n<p>Billed as the biggest review into the industry since privatisation more than 30 years ago and led by Sir Jon Cunliffe, former Bank of England deputy governor, it has ruled out nationalisation and is likely to focus on a regulatory overhaul. <\/p>\n<p>Although the MPs acknowledged issues with state-owned utilities, they urged the Independent Water Commission to consider \u201call water company potential ownership models to determine which are more likely to lead to a thriving and responsible culture\u201d.<\/p>\n<p>Alistair Carmichael, Liberal Democrat MP and chair of the Efra committee, said: \u201cThe Water Commission has got the opportunity to draw up the root and branch reforms necessary to ensure that the issues plaguing the sector are resolved. It must not shy away from bold proposals.\u201d <\/p>\n<p>With <a href=\"https:\/\/www.ft.com\/stream\/fbc41f4b-1fac-4eb7-9ba3-88d1df72014b\" data-trackable=\"link\">Thames Water<\/a> teetering on the brink of bankruptcy, the MPs cautioned that a <a href=\"https:\/\/www.ft.com\/content\/5034c5ea-8550-4cc1-98ef-d399d8e6c6c1\" data-trackable=\"link\">\u00a33bn rescue plan<\/a> proposed by its lenders could result in customers paying \u201cmore in the long run\u201d in bridging loans than if the heavily indebted utility were to be brought under the government\u2019s special administration scheme.<\/p>\n<p>Special administration is where the government takes temporary ownership of a business and can recoup costs through its sale, as in the case of Bulb Energy and its eventual sale to Octopus Energy.<\/p>\n<p>\u201cWhile a special administration should be a last resort\u2009.\u2009.\u2009.\u2009it is unclear whether allowing a failing company to struggle on and accumulate progressively more debt is a better outcome than assuming temporary national control more quickly, with the associated costs that it could incur,\u201d the MPs said.<\/p>\n<aside aria-labelledby=\"aside-label\" class=\"n-content-recommended--single-story n-content-recommended--inset\" data-component=\"recommended\">\n<p class=\"n-content-recommended__title o3-type-body-highlight\">Recommended<\/p>\n<div class=\"o-teaser o-teaser--article o-teaser--small o-teaser--stacked o-teaser--has-image js-teaser\" data-id=\"a59451c4-dd9b-4cdf-aed2-26f2a4f6096e\">\n<div class=\"o-teaser__image-container js-teaser-image-container\"><a href=\"https:\/\/www.ft.com\/content\/a59451c4-dd9b-4cdf-aed2-26f2a4f6096e\" data-trackable=\"image-link\" data-trackable-context-story-link=\"image-link\" tabindex=\"-1\" aria-hidden=\"true\"><\/p>\n<div class=\"o-teaser__image-placeholder\" style=\"aspect-ratio:2493\/1402\"><img decoding=\"async\" class=\"o-teaser__image\" src=\"https:\/\/www.ft.com\/__origami\/service\/image\/v2\/images\/raw\/https%3A%2F%2Fwww.ft.com%2F__origami%2Fservice%2Fimage%2Fv2%2Fimages%2Fraw%2Fhttps%253A%252F%252Fd1e00ek4ebabms.cloudfront.net%252Fproduction%252F21b09efb-df91-4409-aaae-717482d2ed92.jpg%3Fsource%3Dnext-article%26fit%3Dscale-down%26quality%3Dhighest%26width%3D700%26dpr%3D1?source=next&amp;fit=scale-down&amp;dpr=2&amp;width=240\" alt=\"A graphic showing KKR &amp; Thames Water logo as well as a tap and \u00a320 sterling notes\"\/><\/div>\n<p><\/a><\/div>\n<\/div>\n<\/aside>\n<p>Cat Hobbs, founder and director of We Own It, a campaign group, said that by demanding a \u201cproper evaluation of different ownership models, the MPs were acknowledging public demands for renationalisation\u201d.<\/p>\n<p>\u201cThe report calls for \u2018root and branch reform\u2019 of the water sector. We all know the \u2018root\u2019 cause of the water crisis is privatisation. So by ignoring public ownership as a solution, we will only ever get reform of the \u2018branches,\u201d she added.<\/p>\n<p>The Department for Environment, Food and Rural Affairs said it had secured \u201cthe largest investment into the water sector in history\u201d and \u201cbanned unfair multi-million-pound bonuses for bosses\u201d. <\/p>\n<p>Water UK, which speaks for the sector, said: \u201cEveryone agrees that the water system is not working, and we have been calling for fundamental reforms which allow investment to get quickly to where it needs to go<em>.\u201d<\/em><\/p>\n<p>The Water Commission did not respond to a request for comment. <\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Stay informed with free updates Simply sign up to the Utilities myFT Digest &#8212; delivered directly to your inbox. The UK government should explore different models of ownership in the embattled water industry, including the potential renationalisation of privatised companies, a cross-party group of MPs said on Monday. In a highly critical report, the House [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":296361,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[49318,11315,69071,13460,16751,638],"dealstore":[],"offerexpiration":[],"class_list":["post-296360","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-branch","tag-industry","tag-mps","tag-reform","tag-root","tag-water"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>UK water industry needs \u2018root and branch reform\u2019, MPs say - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=296360\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"UK water industry needs \u2018root and branch reform\u2019, MPs say - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Stay informed with free updates Simply sign up to the Utilities myFT Digest &#8212; delivered directly to your inbox. The UK government should explore different models of ownership in the embattled water industry, including the potential renationalisation of privatised companies, a cross-party group of MPs said on Monday. 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