The chief executive of Thames Water has insisted he can rescue the debt-laden utility, which faces running out of cash in months if it cannot raise fresh equity.
Speaking after the environment secretary announced new legislation threatening water company bosses with jail alongside a review of the industry, Mr Weston told Sky News he was untroubled by the threat of prosecution, and confident he can turn around the troubled company.
“I need to digest what the secretary of state said today, I am completely aligned with what he’s trying to do in cleaning up the rivers,” he said.
“I’m focused, like he is, on getting investment and I will work with the secretary of state to do that. I am very encouraged by the tone I heard and I will work with him to try to do what he’s outlined to do.”
Asked directly if he could save Thames Water, he said: “I can save it.”
With around £18bn of debt and cash reserves only until next May, Mr Weston is racing to raise fresh investment after existing shareholders withdrew plans for £3.5bn of fresh equity.
Last week the company asked regulator Ofwat to allow it to increase customer bills by more than 50% in exchange for investment of more than £20bn. Previously Ofwat capped future Thames bill increases at 21%.
If Mr Weston fails to raise fresh capital or persuade bondholders to take a loss, Thames Water may fall into special administration, effectively nationalisation, leaving taxpayers liable until it can be sold to new owners.
The current shareholders have written off their investment.
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Water companies face customer anger over dividends and bonuses
Thames Water is the most extreme example of the challenge facing the privatised water companies, under acute pressure to reduce sewage outflows and modernise infrastructure using private investment, while limiting bill increases.
They face huge customer anger at the scale of dividends and bonuses paid to shareholders and executives in the three decades since privatisation, payments they argue are necessary to maintain a privatised system.
As well as new legislation giving Ofwat and the Environment Agency enhanced powers, Environment Secretary Steve Reed announced a review of the entire industry that will begin in the autumn.
Water industry figures welcomed the move, believing it would give them the opportunity to make the case that investors require a more generous return than they are currently allowed to offer by Ofwat.
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‘We all want the same thing’
In the audience to hear him set out his plans were some of the bosses Mr Reed said have paid themselves £41m since 2021 in bonuses and incentives, including Mr Weston and Liv Garfield, chief executive of Severn Trent, the highest-paid water executive.
Susan Davy, chief executive of Pennon Group, which owns South West Water, told Sky News: “We all just want the same thing and we’re going to focus on making sure we deliver for communities.”
Asked if she was concerned about the threat of prosecution she said: “I’m just going to focus on what’s best for communities and customers.”
