Jacob Rees-Mogg, a Conservative MP, has expressed a lack of sympathy towards Thames Water amidst its financial struggles, suggesting the company should be allowed to face bankruptcy without interference. This statement comes as Thames Water, the UK’s largest water and wastewater services company, confronts severe financial difficulties, with investors pulling out £500 million in emergency funding. Fears are growing that the company might default on its debts, potentially requiring a taxpayer-funded bailout.

Communities Secretary Michael Gove has also voiced his disapproval, targeting Thames Water’s leadership for their approach towards handling the crisis and the potential impact on consumers through higher bills, which he labeled a “disgrace”. The GMB union has similarly accused the company’s shareholders of questionable practices, likening their actions to “blackmailing” both customers and industry regulators.

Despite the mounting criticism and concerns, Thames Water CEO Chris Weston insists that water supplies are secure and that the company’s financial situation is under control. The government, however, remains vigilant and has contemplated placing Thames Water into “special administration” if necessary, a measure previously employed during the collapse of energy supplier Bulb in 2021.

Adding to the company’s difficulties, Chris Weston has suggested a controversial proposal to increase water bills by 40% to fund essential infrastructure improvements. This proposal was met with strong criticism from government officials, including Michael Gove, who condemned the leadership’s attitude towards consumers and emphasized the need for responsible financial management without burdening customers. Chancellor Jeremy Hunt and the government are now closely monitoring Thames Water to ensure the continuation of critical services, amid calls for greater accountability and a possible special administration regime to resolve the financial predicament facing the water provider.