Thames Water secures £3bn loan to survive into 2025 (www.bbc.co.uk)

submitted 1 week ago by 13esq@lemmy.world to c/uk_politics@feddit.uk

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[-] 13esq@lemmy.world 18 points 1 week ago* (last edited 1 week ago)

UK taxpayer is now liable for Thames Water's £12bn debt.

How the fuck did we end up with a system that allows so called "investors" to not just pick our pockets, but the pockets of people that haven't even been born yet?

All this to allow Thames to survive for at least one year.

Thames needs to be allowed to fail and investors need to take the hit, not the bill payer.

[-] Jackthelad@lemmy.world 4 points 1 week ago

Not someone I agree with on much, but Jacob Rees-Mogg said that Thames Water should just be allowed to go under and then the market can sort itself out.

People are not going to be without water, after all.

[-] hitmyspot@aussie.zone 1 points 1 week ago

But if the essential parts are left undone for a period due to not paying staff and they leave as insolvent, how many people would die from contaminated water or similar.

It should be allowed to fail, but a plan to ensure continuity is needed.

[-] tankplanker@lemmy.world 2 points 1 week ago

Loading it up with debt is an intentional strategy as you point out you can't not let an essential service disappear so you either have to nationalise it or bail it out with taxpayer money.

You gain money to pay dividends, you make money on the interest, and then you make money when the company finally goes bust and has to be bailed out and the loan is refinanced.

[-] frankPodmore@slrpnk.net 18 points 1 week ago

Just nationalise it already.

[-] Churbleyimyam@lemm.ee 9 points 1 week ago

Good old free market competitiion taking care of things as usual.

[-] sabreW4K3@lazysoci.al 5 points 1 week ago

It's crazy that they just paid dividends and still need a loan

[-] wewbull@feddit.uk 4 points 1 week ago

...and that load is being used to build / maintain infrastructure, right?

Right?!

[-] frazorth@feddit.uk 2 points 1 week ago* (last edited 1 week ago)

A private company getting private investment? I would expect that there are plenty of string attached to improve, otherwise it'll be nationalised and the investors will lose their money.

If not, then it's just a slight delay for 6 months until they run out of cash again.

this post was submitted on 25 Oct 2024

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