Water problems & blame games

[~ True Legend ~]

A water company that has imposed a hosepipe ban has blamed people working from home for the shortage.

South East Water blames working from home for hosepipe ban

South East Water claims shortages are partly down to more people working from home.

www.bbc.co.uk

Most ridiculous excuse you may have heard, right? Low rainfall? Dry heat spells? Fair enough. But only South East Water has experienced this issue; other water companies haven't experienced these issues. Under-investment is the root cause.

In recent weeks, schools were closed, customers relied on bottled water stations and people were told to use water only for drinking, cooking and hygiene in order to allow the network to refill.

A line has been crossed. This is the UK. WOW

 

[~ True Legend ~]

Thames Water is in talks to secure extra funding as the government says it is ready to act in a worst case scenario if the company collapses.

Thames Water in urgent funding talks amid fears of collapse

Whatever happens to firm, which serves a quarter of the UK population, water supplies will continue as normal.

www.bbc.co.uk

The UK's biggest water firm has been heavily criticised over its performance following a series of sewage discharges and leaks. Thames Water said it is trying to raise the cash it needs to improve.
It said it was keeping water regulator Ofwat informed on progress, and that it still had "strong" cash and borrowing reserves to draw on.

The firm leaks more water than any other water company in UK, losing the equivalent of up to 250 Olympic size swimming pools every day from its pipes.

If the firm cannot secure additional funding, it could be temporarily taken over by the government until a new buyer is found, in a special administration regime (SAR). This route was most recently taken with energy supplier Bulb after it ran into financial difficulties.

On Tuesday, Thames Water's chief executive Sarah Bentley quit the business after just two years in the job. It came weeks after she was asked to forgo her bonus over the company's handling of sewage spills.

The firm has not given a reason for her departure. Earlier this year, Ms Bentley blamed the firm's poor record on sewage management on failings at the company before her time.

"When we look back, we have decades of underinvestment which has led to cost-cutting and some poor decisions leaving the business in a really debilitating state," she told the BBC in March.

Last year Thames Water's owners - a consortium of institutional investors - pumped £500m into the business and pledged a further £1bn to help turn things around.

But the firm is understood to be struggling to raise the remaining cash which it needs to service its substantial debt pile, which is around £14bn. Interest payments on more than half of its debt are linked to the rate of inflation, which has soared over the last year.

Since 2016, profits have not covered the cost of paying interest on its debt, investment costs, and dividend payments, according to Russ Mould, investment director at AJ Bell.

Professor David Hall of University of Greenwich said investors are reluctant to take on the risk of further investment due to fears it will not be repaid.