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UK rules prevent special treatment for Thames Water, minister says
Published by Global Banking & Finance Review®
Posted on July 21, 2025
1 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 21, 2025
1 min readLast updated: January 22, 2026
The UK government cannot offer Thames Water leniency on sewage fines due to current legislation, says Environment Minister Steve Reed.
LONDON (Reuters) -Britain's water legislation does not currently allow the government to give a struggling company, such as Thames Water, any leniency on sewage fines, environment minister Steve Reed said on Monday.
Proposals aimed at overhauling the water sector published by Jon Cunliffe earlier on Monday suggested a formal turnaround regime should be established, giving struggling companies space to recover under so-called "regulatory forbearance".
"The legislation currently doesn't allow for that," Reed said.
"We're going to publish a white paper in the autumn, which will be our response to Jon's report today, and then consult, but as things stand, Thames need to resolve the situation themselves as a stand-alone, private company."
He said the government was prepared for Thames to enter special administration, a form of temporary nationalisation, if that became necessary.
"My hope and expectation is that the creditors will come to an agreement themselves," he added.
(Reporting by Sarah Young; Editing by Kate Holton)
The UK water legislation does not currently allow the government to provide leniency on sewage fines for struggling companies like Thames Water.
The government plans to publish a white paper in the autumn as a response to proposals aimed at overhauling the water sector, which includes consulting on the situation.
Special administration is a form of temporary nationalisation that the government is prepared for if Thames Water's situation does not improve.
The environment minister expressed hope that the creditors will reach an agreement among themselves regarding Thames Water's financial issues.
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