December 17th 2024.
Today, a group of passionate campaigners gathered outside the High Court in central London to raise their voices against Thames Water's proposed £3billion loan and their plan to seek High Court approval for it. According to Thames Water, this loan is crucial for their survival as they are facing the possibility of going bankrupt by March if they are unable to raise the necessary funds. However, a thorough analysis by campaign group We Own It has revealed that if the loan is granted, the average person using Thames Water services will have to bear an additional burden of £250 per year.
At the Royal Courts of Justice today, Thames Water stated that this loan is just the first step in their bailout process and that they are in desperate need of it to avoid running out of cash this spring. The initial step has been approved, and a full hearing will now take place in February, where a final decision will be made. In an effort to make their voices heard, a letter from Windrush Against Sewage Pollution was delivered to the judge by Charlie Maynard, the MP for Witney, requesting the court to consider submissions from the public regarding the bailout.
Founder of Windrush Against Sewage Pollution, Ash Smith, expressed his disappointment and frustration with the situation at the protest, stating, "This is frankly a disgrace. We need to be heard. It is about to get very serious for the billpayer. We are already funding a massive amount of debt just to fund Thames Water's previous unnecessary debts, and that could go up hugely." He also raised concerns about the potential for this bailout to become a financial scam, with the billpayer being the ultimate sufferer. "The billpayer is the creditor in waiting. It is already a scandal and could easily be stopped by the government," he added.
As the protest continued, many could be heard chanting and carrying placards, making their dissatisfaction and frustration with the potential bailout of Thames Water known. The water regulator, Ofwat, is set to make a decision on December 19 regarding the amount of bill increases water providers can implement over the next five years. Thames Water has reported an increase of 40% in pollution incidents in the past six months, with many other water companies also facing pressure for not investing in proper infrastructure and causing harm to waterways.
Matthew Topham, Lead Campaigner at We Own It, suggested a solution that the government could implement to alleviate the situation. He stated, "The government could use a power used by Blair in 2002 with privatised rail track and put Thames Water into special administration, revoking its licence and bringing it into public ownership. This will also cut the debts that the company has, making it cheaper for the public to invest going forward." In response, a spokesperson for the Department for Environmental and Rural Affairs stated that they are closely monitoring the situation and it would be inappropriate to comment on ongoing legal proceedings.
Among the protesters were representatives from various organizations, all united in their disapproval of the potential bailout of Thames Water. Professor Ewan McGaughey, professor of Law at King's College London, also agreed with the campaigners, stating, "I think the argument they are making is a good one. They are saying that the court case could increase Thames Water customers' water bills. Thames Water wants to take on a £3billion loan, paying back £800million in lawyer's fees and interest. That is a pretty bad loan."
A spokesperson for Thames Water defended their decision, stating, "The board and leadership team remain focused on turning around the business, and we believe that a market-led solution is the best financial and operational outcome for our customers, the environment, UK taxpayers, and the UK economy. We have a robust plan that we are confident will deliver on this objective, and this court process is an important step towards putting the company back on a stable financial footing."
As the discussion continued, the government announced that water companies would now have to pay higher compensation to people impacted by water failures. This includes payments of up to £250 for issues such as low water pressure, compared to the £25 available currently. Additionally, those affected by flooding caused by sewer issues could receive £2,000 or more, compared to the current amount of £1,000.
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