It has been an eventful fortnight. First, we heard that Emma Reynolds, Secretary of State for Environment, Food and Rural Affairs, had rejected the bailout deal proposed by Thames Water’s creditors on the grounds that it does not offer sufficient protections for consumers or the environment. While Ofwat are still to have their say, her rejection of the deal was widely lauded as taking us a step closer to Thames Water being put into Special Administration (SAR).
Next we heard about Andy Burnham’s by-election win which signalled hope to many of us that – finally – serious consideration may be given to the public ownership of water in the UK. Burnham has frequently criticized private water companies, arguing for greater public control. He went further recently and said that Thames Water should be nationalised. But saying this in the run-up to a by-election and delivering on it in office are some distance apart.
And already this week, as if by some sort of sick twist, we have seen the appointment of James Purnell as Burnham’s Chief of Staff. Purnell will join Burnham fresh from his role as CEO of Flint Global, a corporate lobbying firm whose clients have included….? Yes, you guessed right: Thames Water.
Indeed the corporate lobbyists are buzzing busily at Burnham with press reports emerging that Thames Water customers could receive shares in the company and that London Mayor could be invited to sit on Thames Water’s Board.
Let’s hope that Andy appreciates that water consumers certainly don’t want shares in Thames Waters’ debt pile and Londoners don’t want their Mayor giving legitimacy to its bosses who are currently trying to persuade our failing regulator, Ofwat, to let them off fines and criminal charges for sewage dumping!