Thames, and the need for water

Posted on July 15 2026

From The Guardian this morning, as if it is good news:

Thames Water might last a year.

The need of the people in the area it serves for water will last in perpetuity.

How is Andy Burnham going to solve that?

The need to do so might be existential.

What is he going to do about neoliberalism running out of road, or maybe water?

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2 Responses

CLIVE PARRY says:

July 15 2026 at 11:09 am

Thames water is “easy” – they are failing on any measure…. including the current, neo-liberal one.

Take into public ownership. Equity holders get nothing (as they already expect); debt holders get government guaranteed “water bonds” that are 30 years maturity at (say) 3% coupon. The massive reduction in interest rate costs (PE proposal has new debt paying 9% ish) that can be spent on infrastructure. Of course, the market value of 3% 30 year bonds will not be “par” – more like 65-70% face value… but that is a loss that bond holders take for investing unwisely.

Now, there are details that are tricky – debt holders have all sorts of different terms/conditions but to quote Donald Trump – “they have no cards”. If bond holders think having their debt secured against TW assets offers protection then let them swap debt for equity…. and be forced to run the water company against the standards we require. They would go bust pretty quickly.

Finally, this tough treatment might scare other infrastructure investors but that isn’t necessarily a bad thing – it might precipitate more companies to accept public ownership before their investments become worthless.

A new Thames Water could then offer a tiered pricing structure that rewards water conservation and build new resevoirs, mend pipes etc..

I would say that we should not expect this quickly of cheaply. Climate change means that who ever runs things water prices must rise.

Reply
- Richard Murphy says:
  
  July 15 2026 at 12:01 pm
  
  Much to agree with
  
  Reply

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