Today’s news summary – Paper Talk
Thursday’s front pages report on the news that the UK’s largest water company, Thames Water, could be close to collapse. There have been emergency meetings and plans are being drawn up as the crisis deepens. There are also reports the government could seek to nationalise the company.
Thames Valley chaos
The Guardian leads with an unnamed minister saying the government has “no true grasp of the costs” involved in stopping the collapse of the company – which serves 15 million customers. The paper says the company could have a hole of £10bn in its finances.
The Daily Telegraph says the government could put Thames Water into special administration. That would mean it would be controlled and bankrolled by the taxpayer until a buyer is found. The paper says plans are being drawn up to nationalise swathes of the water industry because there are fears if Thames Water collapses it could lead to a domino effect.
The Times says four other English water companies are being monitored amid the Thames Water crisis. The paper says rising interest rates have piled pressure on water companies that were already grappling with high energy and chemical prices and the cost of cleaning up pollution.
The Daily Mirror says the Conservatives’ privatisation of the water companies has proved to be one of the biggest policy debacles since WW2. The paper says firms have been loaded with debt to pay their shareholders billions in dividends.
The Daily Mail says its shameful that Ofwat has allowed all water firms to provide a sub-standard service while drawing bumper profits and racking up unsustainable debts.
The Sun is also critical of the regulator. In an opinion piece, Leo McKinstry says the regulator always indulges in impressive rhetoric but is never able to deliver real change for the consumer.
