Treasury seeks clarity on cost of Thames Water renationalisation

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The treasury is looking for greater clarity on the eve of this week’s decision, which can decide the future of the largest water supplier of Britain.

Thames Water, which provides water and sewerage services in about a quarter of the UK, on ​​the edge of the knife, through which Basic decision On Tuesday, the judge of 3 billion pounds for creditors will confirm the duty of creditors to raise its own capital and reorganize its finances.

If judges reject the plan, Thames water It is widely expected that the unprecedented temporary transformation of a special management regime and aquatic company will be named.

The treasury is looking for clarity The effect of SAR In the last spring statement, two sources near the government, which are close to the process, are said.

The spring statement will include the “Economic and Fiscal Forecast” Office for the Budget Responsibility, which is planned to deteriorate in public finance.

People familiar with the situation, which assumed that the government was a breakthrough to find out possible costs Thames Water Entering SAR: Because it’s against the transformation. Memory is made that SAR will have domino affect water companies, and that some workers claim to be useful for the usefulness of constantly reviving. It is also worried about the impact on the government’s balance, even if the short-term utility service Infrastructure regressionA number

But “Tom”, the global leader in “Hogan to Lovel” law firm said that the utility should continue to operate and earn income from customers, and Thames Way may even be “cash flow positive.”

Debt payments will be frozen, the additional cash funds will be released, which can be for operational improvements and investments of infrastructure, he added.

“Although the government may need to provide certain interim funding to Thames Water if there is probably no private provider in any reconstruction of the case, or when the business is sold to new investors.”

Promoting greater clarity to expenses follows the criticism of the government and the regulatory body at the beginning of this month, which is conducted by the court session, will be approved by 3 billion pounds.

Mr. Justice Leuk said that the water regulator and government Was “painful”A number

3 billion loan offered from class creditors, which include US Instructions for Elliott Management and Silver Point, 9.75% interest rate: as well as payments. The court opposed the other group of creditors who stood almost all money under the deal and laid their slightly cheaper loan.

Environmentalists led by Liberal Democratic MP Charlie MeNnard Presented by William Day, Official Bonon, an official, addresses a loan in court, not in the interests of Thames Water Doughm. Only one third of the emergency loan reaches the utility after other expenses, says Mainard. The company ends 15 million pounds per month on legal and consulting payments.

Temmed water said on Friday that it is Appeal planning Although annual prices for customers to increase the competition and market reputation, although annual bills are already planned to raise in April for one-third of the household. Half of the 3 billion creditors’ loans were conditional on CMA challenges and still must be fully agreed with lenders.

The government spokesman said. “The company remains stable and as a responsible government, which we are ready for a number of scenarios in our regulations.”