Thames Water: Insolvency
The question
To ask the Secretary of State for Environment, Food and Rural Affairs, whether she has made an assessment of the potential merits of bringing Thames Water into special administration.
Answered by Emma Hardy
There is a high bar for the use of a Special Administration Regime (SAR). The current law states that Special Administration can only be initiated if the company becomes insolvent, can no longer fulfil its statutory duties or breaches an enforcement order.
The company remains financially stable. However, the Government is closely monitoring the situation and stands ready for all eventualities – including being ready to apply for a SAR if necessary.
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