Thames Water: Finance
The question
To ask the Secretary of State for Environment, Food and Rural Affairs, whether her Department has assessed Thames Water’s current financial position against the statutory criteria for applying to the High Court for a special administration order.
Answered by Emma Hardy
The law states that Special Administration can only be initiated if the company becomes insolvent or they are in such serious breach of their principal statutory duties or an enforcement order that it is inappropriate for the company to retain its licence.
For a company to be considered insolvent means that it is either unable to or is likely to be unable to pay its debts. Thames Water has ongoing liquidity. We stand ready for all eventualities – including being ready to apply for a Special Administration Regime if necessary.
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