A report by the Common Wealth thinktank suggests that England's water companies, including Thames Water, could be brought into public ownership for minimal cost, potentially close to zero, by using a special administration process. This challenges the commonly cited £99bn cost, arguing that debt, pollution, and underinvestment justify the process, and that the actual market value is lower than regulatory capital value.
Public ownership of England’s water companies could cost close to zero, says thinktank
Water industryThames WaterBusinessPoliticsUKEngland
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TL;DR: Key points with love ❤️A report by the Common Wealth thinktank suggests that England's water companies, including Thames Water, could be brought into public ownership for minimal cost, potentially close to zero, by using a special administration process. This challenges the commonly cited £99bn cost, arguing that debt, pollution, and underinvestment justify the process, and that the actual market value is lower than regulatory capital value.
Trending- 1 1990: Assumed value of companies used for regulatory capital value.
- 2 Past: Railtrack and Northern Rock were put into special administration without compensation for investors.
- 3 Current: Common Wealth report published (2025-06-09), arguing for public ownership.
- Potential legal action from bondholders if special administration is used without compensation.
- Government states nationalization would cost billions and worsen underinvestment and pollution during the unpicking process.
- Strong public support for nationalized water suppliers.
What: A report by Common Wealth argues that England's water companies could be nationalized for minimal cost using a special administration process, challenging previous cost estimates.
When: Published 2025-06-09; report discusses past estimates (1990 assumed value) and current situation.
Where: England, UK (specifically mentions Thames Water).
Why: To safeguard vital public services when companies are failing (due to debt, pollution, underinvestment); to challenge inflated cost estimates for nationalization.
How: By using a process known as special administration, which allows ministers to take over failing companies and keep them under permanent public ownership, arguing their value is close to zero due to debt and underinvestment.