Thames Water

[Biker 1]

How on earth does this pan out? £14 billion debt could end up being yet another tax payer bailout.
Surely our key utilities should never have been privatised?

https://news.sky.com/story/ministers-weigh-conting...

[Blue62]

It’s a national scandal, the whole thing needs standing on its head along with the energy sector.

[bitchstewie]

I don’t know how this is done in other countries but how the hell did water ever end up in private hands?

[valiant]

The CEO resigned yesterday “with immediate effect” although she’s staying on for the moment to “ensure a smooth transition”.

How can a monopoly with a captive customer base lose money remains a bit of a mystery. I get that the new super sewer is costing squillions but Thames Water customers are paying extra for that.

One thing that caught my eye was that one of the senior directors who’ll be helping manage the company whilst they find a new boss is the ex-boss of OFWAT. Maybe a too cosy relationship between the water companies and the regulator have helped lead us to the position we find ourselves in now with all the water companies?

[JagLover]

valiant said:

The CEO resigned yesterday “with immediate effect” although she’s staying on for the moment to “ensure a smooth transition”.

How can a monopoly with a captive customer base lose money remains a bit of a mystery. I get that the new super sewer is costing squillions but Thames Water customers are paying extra for that.

Their revenues are fixed by the regulator whereas the costs of debt are likely going up due to higher interest rates and they will likely have considerably higher running costs.

Hence no doubt why are seeking an extra £1bn from investors.

[ClaphamGT3]

JagLover said:

Their revenues are fixed by the regulator whereas the costs of debt are likely going up due to higher interest rates and they will likely have considerably higher running costs.

Hence no doubt why are seeking an extra £1bn from investors.

And in addition they are mandated by the regulator to undertake specific capital works in every regulatory period. This means that they face a perfect storm of regulatory caps on revenue, regulatory performance standards to meet, regulatory capital investment to deliver on a rolling five-yearly basis and variable cost of capital.

One thing that hasn't really affected Thames is Tideway Tunnel as that is being delivered via a separate entity that sits outside the regulated business.

[Lotobear]

High time that all utilities were brought back into public ownership IMHO - it just doesn't work, and I speak as someone who naturally leans right of centre.

Mrs Loto and I were just saying this morning over breakfast that this country is completely and utterly fked, it's hard to comprehend how this has happened in such a short space of time.

[Wills2]

Incredible that they will pay £1.6 million a year to have someone drive a business into the ground, it's time this was stopped, billions handed over via dividends and board pay, replaced by billions in borrowed cash only to fail and have the customer/tax payer pick up the bill, it's bonkers.

[vikingaero]

Wills2 said:

Incredible that they will pay £1.6 million a year to have someone drive a business into the ground, it's time this was stopped, billions handed over via dividends and board pay, replaced by billions in borrowed cash only to fail and have the customer/tax payer pick up the bill, it's bonkers.

It's the way forward for UK Plc. Allow foreign investors to buy up your critical infrastructure/national companies Load them with debt and cream off billions. If you tried that with other countries infrastructure they wouldn't let you get past the sniff test.

[Hereward]

Lotobear said:

High time that all utilities were brought back into public ownership IMHO - it just doesn't work, and I speak as someone who naturally leans right of centre.

Mrs Loto and I were just saying this morning over breakfast that this country is completely and utterly fked, it's hard to comprehend how this has happened in such a short space of time.

Agreed on all points.

[Wills2]

vikingaero said:

Wills2 said:

Incredible that they will pay £1.6 million a year to have someone drive a business into the ground, it's time this was stopped, billions handed over via dividends and board pay, replaced by billions in borrowed cash only to fail and have the customer/tax payer pick up the bill, it's bonkers.

It's the way forward for UK Plc. Allow foreign investors to buy up your critical infrastructure/national companies Load them with debt and cream off billions. If you tried that with other countries infrastructure they wouldn't let you get past the sniff test.

Very true, they must look on and laugh, just like with energy let any old set of grifters start up a supply business go bust and then get the tax payer/customers to pick up the tab, when will it stop.

There has to be a middle way free from corporate greed and short term government meddling, such as a non profit org structure that plans for the future instead of just thinking about shareholder value and how can I max this years bonus round.

[Four Litre]

vikingaero said:

Wills2 said:

Incredible that they will pay £1.6 million a year to have someone drive a business into the ground, it's time this was stopped, billions handed over via dividends and board pay, replaced by billions in borrowed cash only to fail and have the customer/tax payer pick up the bill, it's bonkers.

It's the way forward for UK Plc. Allow foreign investors to buy up your critical infrastructure/national companies Load them with debt and cream off billions. If you tried that with other countries infrastructure they wouldn't let you get past the sniff test.

Very true, most would literally laugh in your face. We need to rethink all of our critical infrastructure and how it is being managed. And by that I mean roads, energy and water. If not the only way is down for us all. Currently most of these clowns are just taking us for monkeys and rinsing the companies until there is nothing left.

The other issue is that the regulators are clearly ***king useless, therefore what is their purpose.

[Lotobear]

vikingaero said:

Wills2 said:

Incredible that they will pay £1.6 million a year to have someone drive a business into the ground, it's time this was stopped, billions handed over via dividends and board pay, replaced by billions in borrowed cash only to fail and have the customer/tax payer pick up the bill, it's bonkers.

It's the way forward for UK Plc. Allow foreign investors to buy up your critical infrastructure/national companies Load them with debt and cream off billions. If you tried that with other countries infrastructure they wouldn't let you get past the sniff test.

fair play to Italy for recently blocking the Chinese from taking a controlling stake in Pirelli - hard to imagine UK Govt doing the same (assuming of course there was anyhting left here to take a controlling stake in)

[sugerbear]

bhstewie said:

I don’t know how this is done in other countries but how the hell did water ever end up in private hands?

Companies in private hands are always more efficient than government run companies. Or so Margaret Thatcher and her acolytes would have you believe.

The corruption started many years ago. https://edm.parliament.uk/early-day-motion/7665/th...

[croyde]

Talk on the radio this morning of hiking the water rates by 50 percent

I give up, I can't work more than 7 days a week unless we invent cross dimensional working

I've just told the bank not to pay British Gas this month after they hiked the DD by 5x. Can't get hold of anyone at BG so hopefully doing that may get them to contact me.

They are all at it. Daylight robbery.

[Bannock]

Lotobear said:

High time that all utilities were brought back into public ownership IMHO - it just doesn't work, and I speak as someone who naturally leans right of centre.

Mrs Loto and I were just saying this morning over breakfast that this country is completely and utterly fked, it's hard to comprehend how this has happened in such a short space of time.

June 23rd, 2016. Triggered a domino effect, wiping all competent personnel from the top of government.

Pragmatism has been replaced by stubborn ideology, and it was the ideology of the private profit motive being the only thing which could deliver good services which is at fault for the topic of this particular thread.

Don't worry, we've only got a year and a half, max, before we get a say on things and we can at least hope for the start of a turnaround.

[Bathroom_Security]

Its just corruption.

Do Thames pay shareholders? Amazes me that basic utilities can be capitalised on in such a way.

You can do something about it, but at a cost to your own, and probably by proxy your families life.

Forget Thames though, what about Woking Borough Council?

[valiant]

So if Thames go bust, who is on the hook for their £14bn pounds of debt?

Does the government take over the servicing of the debt or do those who are owed the money take a bath?

How are the other water companies fairing? Will it be a domino effect or is this just a one off due to management incompetence?

So many questions…

[Four Litre]

croyde said:

Talk on the radio this morning of hiking the water rates by 50 percent

I give up, I can't work more than 7 days a week unless we invent cross dimensional working

I've just told the bank not to pay British Gas this month after they hiked the DD by 5x. Can't get hold of anyone at BG so hopefully doing that may get them to contact me.

They are all at it. Daylight robbery.

Wont help you now, however we found British Gas to be one of the worst for ripping you off. They ignored our meter readings for around a year even though we uploaded them monthly. So we eventually got 'corrected' and owed them thousands. I really think they do it on purpose so you think you are getting an ok deal, so stay with them. In reality your being ripped off and then you cant leave as you are in their pocket.

Wouldnt go back if they were the cheapest out there

Best of luck.

[CloudStuff]

https://www.bbc.co.uk/news/business-41152516