Latest news with #environmentalbreaches
The Guardian
6 days ago
- Business
- The Guardian
Chinese firm a leading contender to buy Thames Water, reports say
A Chinese firm is reportedly a leading contender to buy Thames Water if the heavily indebted company collapses in coming weeks. Hong Kong's CKI, which invests in power and other utility companies in the UK, is among those lining up to acquire the water and sewerage supplier if it enters a special administration regime (SAR), according to the Times. It has reportedly said it would be prepared to operate under tougher penalties for environmental breaches than Thames's class A creditors, who have put together their own purchase bid. The creditor group has said the company cannot afford to operate with an expected £1bn of fines coming down the track, which are levied by the regulator for breaches such as illegally dumping sewage. In May, Thames was hit with a record £104m fine over environmental breaches involving sewage spills. The environment secretary, Steve Reed, has in recent months stepped up preparations for the possibility of putting Thames into SAR – effectively a form of temporary nationalisation. On Tuesday the government confirmed it had appointed FTI Consulting to make contingency plans for a potential collapse. The appointment indicates that FTI is the first choice to act as administrator if the government enacted an SAR, although a court would ultimately approve such a step. Thames, which supplies 16 million customers in London and south-east England, has been racing to pull together a deal to avoid financial collapse. The government has been trying to avoid such an outcome, with the Treasury threatening that a potential £4bn bill from the SAR could be forced on to Reed's department. This process would ensure that the taps stayed on for customers but would heap immediate costs on to the government. However, the government's Water (Special Measures) Act contains a provision for SAR costs to be recouped from customer bills further down the line. Thames faced embarrassment earlier this year when its preferred bidder, KKR, pulled out of a deal at the last minute. Now, its class A creditors, who hold the bulk of the company's senior debt, are in talks with the regulator for England and Wales, Ofwat, about a deal to inject capital into the company, which has £17.7bn of net debts and regulatory gearing of 84.4%. CKI has previously expressed interest in buying the company and wrote to Sir Adrian Montague, the chair of Thames, when KKR pulled out earlier this summer. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The private infrastructure giant had previously been eliminated from the process despite tabling a multibillion-pound proposal, as Thames chose KKR as a preferred bidder and entered exclusive talks with the company. Ministers are said to be reassured by CKI's extensive experience in operating assets at scale, such as UK Power Networks, but some MPs have raised concerns about the Beijing links of the network. The former Conservative leader Iain Duncan Smith previously said on social media that a CKI acquisition 'should be avoided at all costs'. The Chinese government's sovereign wealth fund owns 9% of Thames Water. Thames Water and CKI have been contacted for comment.
Reuters
6 days ago
- Business
- Reuters
Hong Kong's CKI emerges as leading contender for Thames Water, The Times reports
Aug 12 (Reuters) - Hong Kong's CK Infrastructure Holdings (CKI) ( opens new tab has emerged as a leading contender to take over Thames Water and could assume control within weeks if Britain's largest water utility is placed into special administration, The Times reported on Tuesday. Reuters could not immediately confirm the report. CKI has indicated it would be prepared to operate under tougher penalties for environmental breaches, a regime that Thames Water's creditors say is financially unviable, the report said. Thames Water did not respond immediately to a Reuters request for comment outside regular business hours, while CKI could not be immediately reached for comment. Earlier on Tuesday, Reuters reported that Britain had appointed FTI Consulting to advise on contingency plans for heavily indebted and loss-making Thames Water to be placed into a special administration regime. Thames Water is seeking to avoid nationalisation by securing 5 billion pounds ($6.75 billion) of financing from senior bondholders. In July, the company said it had enough cash to operate for 12 months but needs a reset of regulations for any deal to proceed. ($1 = 0.7409 pounds)
CNA
6 days ago
- Business
- CNA
Hong Kong's CKI emerges as leading contender for Thames Water, The Times reports
Hong Kong's CK Infrastructure Holdings (CKI) has emerged as a leading contender to take over Thames Water and could assume control within weeks if Britain's largest water utility is placed into special administration, The Times reported on Tuesday. Reuters could not immediately confirm the report. CKI has indicated it would be prepared to operate under tougher penalties for environmental breaches, a regime that Thames Water's creditors say is financially unviable, the report said. Thames Water did not respond immediately to a Reuters request for comment outside regular business hours, while CKI could not be immediately reached for comment. Earlier on Tuesday, Reuters reported that Britain had appointed FTI Consulting to advise on contingency plans for heavily indebted and loss-making Thames Water to be placed into a special administration regime. Thames Water is seeking to avoid nationalisation by securing 5 billion pounds ($6.75 billion) of financing from senior bondholders. In July, the company said it had enough cash to operate for 12 months but needs a reset of regulations for any deal to proceed. ($1 = 0.7409 pounds)
Yahoo
22-05-2025
- Politics
- Yahoo
‘Record' 81 criminal investigations into water sector as sewage inspections soar
A 'record' 81 criminal investigations into environmental breaches by water firms have been launched as the Government attempts to show it is getting to grips with the troubled sector. The number of criminal investigations into illegal sewage spills and other breaches of environmental permits has more than doubled since the general election, following a 400% surge in spot checks at water company premises and rivers by the Environment Agency in the past year. Environment Secretary Steve Reed said the Government will ensure 'water companies who break the law will finally be punished for their disgraceful behaviour' as part of efforts to clean up England's rivers, lakes and seas. It comes amid widespread anger over the polluted and degraded state of the country's waterways, as well as rising bills, high dividends, and executive pay and bonuses at the UK's privatised water firms. Environmental campaigners said it is good to see the Government taking water pollution seriously, but warned that potential cuts to the Environment Agency in the spending review will prevent it holding polluters to account. Troubled utility Thames Water has the highest number of investigations against it, with 31, while Anglian Water has 22, government figures show. Breaches of environmental permits, such as releasing excessive pollution into rivers or failing to carry out water quality monitoring, are criminal offences. The Environment Agency says it follows up on every offence it finds, with the most serious cases, such as illegal sewage spills, prompting criminal investigations which could lead to executives being jailed for up to five years and water companies fined hundreds of millions of pounds. Under new laws, water company bosses could also face up to two years in prison for obstructing an investigation. Cabinet minister Mr Reed said: 'Water companies have too often gone unpunished as they pump record levels of sewage into our waterways. No more. 'A record number of criminal investigations have been launched into law-breaking water companies – which could see bosses behind bars. 'With this Government, water companies who break the law will finally be punished for their disgraceful behaviour so we can clean up our rivers, lakes and seas for good.' Environment Agency chief executive Philip Duffy said: 'This milestone is testament to our determination to hold water companies to account and achieve a cleaner water environment. 'Our message to the industry is clear: we expect full compliance throughout the water system, and we will not hesitate to take robust enforcement action where we identify serious breaches. 'This is just the beginning – we are on track to deliver 10,000 inspections next year, using our tougher powers gained through the Water (Special Measures) Act alongside more officers and upgraded digital tools to drive better performance across the water sector.' Figures released by the Environment Department (Defra) and Environment Agency show the regulator had launched 81 criminal investigations between July 2024, when the general election was held, and March 2025 – an average of nine a month. That compares with a total of 187 criminal investigations launched in the period from April 2020 to June 2024, an average of 3.6 per month, representing a 145% increase – although the number of investigations has been rising year on year since 2023. The increase in investigations follows a quadrupling in the number of inspections by the regulator in the last financial year, with more funding and extra staff brought in to boost checks under the last government. James Wallace, chief executive of campaign group River Action, said: 'It's good to see the Government finally taking water pollution seriously', but suggested jail time for water bosses remains highly unlikely. He added: 'Criminal investigations are welcome, but regulators need urgent access to courts and, if the upcoming spending review slashes Environment Agency funding, how will it sustain the level of enforcement needed to hold polluters to account — from water companies to factory farms? 'Tough talk needs backing with real resources.' Ali Plummer, director of policy and advocacy at Wildlife and Countryside Link coalition of conservation groups, said: 'While it's positive to see the Government taking such action, the fact that 81 criminal investigations across 11 water and sewerage companies are warranted should set alarm bells ringing in every corner of Government. 'This isn't a case of isolated bad practice — it's evidence of systemic failure. 'For too long, pollution has been treated as a manageable cost rather than a criminal offence. 'What we need now is proper funding for regulators so they can investigate, enforce, and hold powerful polluters to account.' A spokesperson for industry body Water UK said: 'It is right that water companies are investigated and held to account when things go wrong. 'Almost 99% of sewage and water treatment works meet their permits and we are focused on getting to 100%.' Sign in to access your portfolio
