Nationalisation campaign group We Own It is calling on MPs to sign an open letter to Ofwat and environment secretary Emma Reynolds. They’re urging the water regulator to reject a ruinous deal with Thames Water’s creditors.
On 1 April, the Financial Timesreported that Thames Water’s creditors were close to sealing a deal to keep the failed water supplier out of special administration. That is to say, Ofwat may be about to sign away the public’s shot at temporarily re-nationalising the UK’s worst private water supplier.
Instead, Ofwat would waive Thames Water’s fines until 2030. And, as if that wasn’t enough, the company’s targets for pollution and performance improvements would be “significantly modified.” The Financial Times also explained that:
The clock is ticking on reaching an agreement, as Thames Water will run out of money again in October. The offer from the creditors — who provided the company with £3bn in emergency funding last year — first went to Ofwat for approval in June 2025.
Ofwat must put any deal out for a three-month public consultation. Meanwhile, as part of the offer by creditors, which include US hedge funds Elliott Management and Silver Point, a proposal to take a 30 per cent write-down on their debt, and for a second tranche of more junior creditors to lose all their cash, will also have to be tested in the High Court.
We Own It put it another way:
Thames Water’s creditors want a holiday from the rules, and they want us to pick up the bill.
That’s a bit more succinct, if you ask us.
Thames Water — ‘Rewarded for their failure’
As such, the campaign group is asking “every single MP” to sign an open letter demanding a rejection of the deal. It states, in no uncertain terms, that the proposal would “completely undermine regulation of the water industry”, before adding that:
In the first six weeks of 2026 alone, Thames Water dumped 80,000 hours of sewage into our waterways. Freeing them from fines now would be a catastrophe for our rivers and seas, and a grave danger to public health.
This deal impacts every single household in England. By signing off, you would set a clear precedent for all privatised water companies: that they will be rewarded for their failure by being allowed to set their own rules and regulations.
Thames Water has been in breach of its licence conditions since July 2024. Under special administration, we can write off a greater portion of Thames Water’s debt, and secure a better deal for the public purse.
In the interests of our constituents, we urge you to reject this outrageous deal, and place Thames Water in Special Administration without delay.
We call on you to make the right decision for our constituents and our environment.
‘A new low’
The repeated and egregious failures of Thames Water are already a scandal of national proportions. Ofwat letting the company off the hook by agreeing to the creditors’ proposals would only add further insult to injury. Or, as We Own It so rightly put it:
Signing off on this deal would set a new low for the whole of the privatised water industry.
You can read the open letter in full by following the link here.
Likewise, you can check if your MP has already signed by following the link here.
And you can see a list of MPs in the Thames Water area who have yet to sign here.
If your MP’s name is missing, consider sending them a reminder by following the link here.
Featured image via the Canary
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