A leaked document reveals Thames Water spent at least £136m on securing emergency funding over 12 months, exceeding the £130m it paid in fines. This 'atypical expenditure' includes significant fees to law firms (Linklaters, Akin Gump) and consultancies (AlixPartners, Bain, Deloitte, KPMG, Kroll, Teneo) for its restructuring efforts (Project Crabtree) to avoid nationalization amidst a £20bn debt pile. Creditors propose a £5.3bn injection but seek relief from fines, while Thames Water and Ofwat state customers will not bear these costs.
Thames Water spent £136m on securing emergency funding, leaked document suggests
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TL;DR: Key points with love ❤️A leaked document reveals Thames Water spent at least £136m on securing emergency funding over 12 months, exceeding the £130m it paid in fines. This 'atypical expenditure' includes significant fees to law firms (Linklaters, Akin Gump) and consultancies (AlixPartners, Bain, Deloitte, KPMG, Kroll, Teneo) for its restructuring efforts (Project Crabtree) to avoid nationalization amidst a £20bn debt pile. Creditors propose a £5.3bn injection but seek relief from fines, while Thames Water and Ofwat state customers will not bear these costs.
Trending- 1 December 2024: Julian Gething seconded to Thames Water as chief restructuring officer.
- 2 January-February 2025: Court showdown to force losses on debt holders.
- 3 Financial year to March 2025: Thames Water spent £136m on securing emergency funding.
- 4 30 May (likely 2025): Chris Weston's letter to Alistair Carmichael.
- 5 Last week: Yorkshire Water and South East Water announced hosepipe bans.
- 6 Currently: Thames Water is in talks with Ofwat over a takeover by creditors.
- Significant financial outlay by Thames Water on advisory fees, exceeding fines.
- Debate over who bears the cost of these fees (customers vs. lenders).
- Potential takeover by creditors.
- Increased scrutiny of the UK water industry due to heatwaves and drought conditions.
What: Thames Water spent at least £136m on securing emergency funding and restructuring efforts (Project Crabtree) over 12 months, as revealed by a leaked 'atypical expenditure' document. This amount exceeds the £130m it paid in fines.
When: Over 12 months (financial year to March 2025), last year (scrambled for funding), January and February (court showdown), December 2024 (Julian Gething seconded), 30 May (letter to Alistair Carmichael), last week (Yorkshire Water and South East Water hosepipe bans).
Where: London and south-east England (Thames Water service area), UK (general context).
Why: Thames Water is struggling under a £20bn debt pile and needed emergency funding to avoid temporary nationalization. The high fees reflect the complexity of the multi-billion-pound restructuring process involving hundreds of creditors.
How: Thames Water engaged numerous law firms and consultancies for its refinancing and sale process (Project Crabtree). A court showdown was held to force losses on some debt holders for rescue cash. Creditors are now in talks with Ofwat for a takeover, proposing a £5.3bn injection but seeking relief from fines.