Thames Water has warned funding is due to dry up by November and further money will be dependent on the views of incoming PM Andy Burnham, as its major lenders seek to shore up its financial future.
Not enough details where the costs are. For example split the last mile ownership into townships and concentrate the costs locally. Grid ownership appears a national security item, but the providers of clean water and sewage processors could still be private.
Thatcher initiated this privatisation of essentials, it was a huge mistake and now we see the proof. Whatever the government does the tax payers are going to have to pay, where is the money to come from? The bond markets are not happy with yet more borrowing, consumers are being whacked on their bills, no one wants more taxes but there may be no choice.
The estimates of the cost of nationalizing Thames Water range from £0 to £99 bn. Sky News has misreported here by mentioning only the upper ceiling of the cost (£100 bn). Moreover, if the UK had a law to make shareholders and bondholders pay for harm they leave (a “bail in” provision), the 'total value' of the company would become negative (-£26 bn), but since we don't, the 'appropriate value' is £0.
People don't appreciate just how fundamentally screwed our previously nationalised industries have become and just how expensive it will be to reset them to where they once were before the thatcher massacre
Can someone explain how many water providers there currently are in central London to compete with TW….Oh wait, none? Wow, what a great use of the free market…and what a win for privatisation where there are no market forces keeping them competitive.
Sky have skipped over a number of facts here. Why thames water is in so much debt. The stockholders placed the company in debt to finance payouts. Additionally, there is legislation in place to allow failing services to be renationalised.
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When a company goes bust everyone looses money that is literally how it works ...
Laking context in this video