THE Government believes it would quickly find a buyer at a knockdown price if Thames Water goes bust.
The troubled company warned last week it could run out of cash by December as it scrambles to push back debt repayment dates.
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But Labour is understood to be comfortable that would not lead to higher customer bills — and has ruled out a state bailout.
A special administration regime would let Thames Water keep providing customers’ essential services under temporary Government ownership.
The method was used when Bulb Energy went bust in 2021 — before Octopus Energy bought the business.
The Government reckons Thames Water’s’ infrastructure assets, valued at £147billion, would be attractive to a buyer.
READ MORE ON THAMES WATER
It is the UK’s largest water company with 16 million customers.
Government sources say a new owner could bank on income as bills are set by regulator Ofwat.
But industry sources raised concerns that the Government was being too hasty in believing a buyer would swoop in.
They said sovereign wealth firms and international investors show unwillingness to invest in UK utilities because of Ofwat’s recent overreach.
Ofwat has limited the amount water companies can hike customer bills. A new water Bill includes a jail threat as part of a sewage spills crackdown.
Thames has argued it is “uninvestable” without higher bills to fund work on reducing spills and leaky pipes.
The firm has £19billion debt — largely due to previous private equity owners taking huge dividends.
It is trying to find its own solution — and tap investors again for funds.
But they would be conditional on customer bill increases. Thames Water has to wait until the end of the year for Ofwat to give its verdict.
There is thought to be a gulf between what the regulator agrees are palatable bill rises and what Thames Water wants.
Company boss Chris Weston has said he can save the firm and is still trying to drum up support from hedge funds including Apollo, Golden Tree and Elliott.
Thames declined to comment.
50yrs in its Prime
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BUDGET fashion chain Primark celebrates 50 years today since it opened its first store in Derby.
Back in September 1974 it sold tweed coats for £9.50, crepe blouses for 99p and socks for 23p.
Today it has 185 UK stores and 265 overseas. Shoppers are still attracted to its cheap fashions. A two-pair of socks from the collection of singer Rita Ora, above, costs £3.
It has largely stayed away from online sales, only in the past year offering up click and collect options.
Kari Rodgers, the firm’s UK retail director, said: “Over the last 50 years British high streets and style have changed a lot and Primark has been there every step of the way.”
£40m bill for theft at Co-op
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SHOPLIFTING has cost the Co-op £40million in just the last six months — with bosses warning “it isn’t getting better”.
The bill is 20 per cent higher than last year — despite the retailer spending £18 million on boosting security for its stores and staff.
Matt Hood, the firm’s food boss, said that it was investing to keep personnel safe but said “the reality is that every day four of our colleagues are attacked, which is up 34 per cent on two years ago”.
The cost is a black spot on the employee-owned retailer’s overall improved fortunes.
It made a return to black with profits of £58 million for the first six months of 2024 — compared to losses of £33 million a year ago.
The retailer said that its healthier balance sheet had given it confidence to open 120 new convenience food stores.
It added that it now has 5.5 million members, a 20 per cent increase on 2023.
Takeover bid snub
RIGHTMOVE has rejected a third takeover approach from Australia’s REA Group.
The property site said that the £6.1billion bid was “unattractive and materially undervalues the company and its future prospects”.
REA Group is majority- owned by News Corp, which is the ultimate owner of The Sun.
It reacted to the latest rebuff by saying it was “frustrated” by the lack of engagement from Rightmove’s board.
Cinema’s boost
CINEMA chain Everyman is hoping for a boost from blockbusters such as Gladiator II and Wicked after delayed releases reined in its earnings.
It reported a 22 per cent rise in sales to £46.9million for the six months to the end of June.
However, it said it could have been even higher if not for delays caused by the impact of the Hollywood writers’ strike last year.
The firm, which has 45 cinemas across the UK, said it still plans to open three new venues this year and four more in 2025.
SETTEES SETBACK
SOFA retailer DFS has blamed Houthi attacks on Red Sea shipping for reporting a loss.
The chain said £12million of sales had been delayed by container ships having to take longer routes around Africa.
Supply issues have hit the business at a time when its sales are already under pressure from consumers cutting back on “big ticket” purchases.
DFS sales dropped by 9.3 per cent to £987.1million in the year to the end of June.
The firm posted a £1.7million pre-tax loss compared to profits of £29.7million last year.
CONFIDENCE of consumers has fallen due to negative publicity on the state of the UK economy, an index by the British Retail Consortium found.
Consumers’ views on their personal finances dropped to -6 from a score of 1 last month.
