Thames Water appoints new boss as pressure mounts on turnaround
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Thames Water has appointed a new chief executive to lead its turnaround efforts amid growing pressure on the company over both its operational and financial health.
Britain’s largest water supplier said that Chris Weston, formerly of Centrica and chief executive of power specialist Aggreko, would start work on 8 January.
His to-do list is extensive.
Sky News revealed in June that the government was drawing up a contingency plan for a possible collapse over concerns about the company’s ability to service its huge debt pile.
That was measured at £14bn at the time.
Thames, which serves 15 million customers across London and the southeast of England, raised £750m of investment from shareholders but its most recent results showed net debt had risen to £14.7bn.
The company, under pressure from politicians and the industry regulator, has announced plans to tackle a poor record on issues such as leaks and sewage contamination.
But the concern over its finances intensified this week when Thames admitted during a hearing with MPs that it does not currently even have the money to repay a £190m loan bill due next April.
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Thames Water can’t pay £190m
It added that its turnaround plan would take longer than three years to complete.
Thames has blamed low consumer bills for its problems – and demanded the regulator Ofwat agree a 40% increase from 2025.
However, critics say the financial woes are largely of its own making due to historical high executive pay levels and shareholder dividend payouts.
Mr Weston will replace interim co-chief executives Cathryn Ross and Alastair Cochran.
They were brought in when former boss Sarah Bentley abruptly stepped down in June – a day before news of the government’s attention on the funding crisis emerged.
Thames Water chairman Sir Adrian Montague said Mr Weston had a “proven track record working in regulated environments, turning round business performance and improving customer experience.”
“He brings strong operational and strategic expertise as we enter this crucial period of delivering our refocused turnaround plan and providing the service that customers rightly expect of us.”
The incoming boss said of his own appointment: “Working with the team I will be focused on delivering the turnaround that the business has outlined and improving performance over the next few years.
“I recognise that this business is critical to both society and the UK and how important it is that we restore confidence in our operations and financial position.”
