Thames Water’s senior creditors have selected former cabinet minister Lord John Hutton as independent chair designate under a proposed takeover and recapitalisation of the struggling utility. The appointment would take effect only if the London & Valley Water consortium’s plan is approved by the government and regulators.
Hutton would oversee a proposed 10-year turnaround of the company, which serves about 16 million customers across London and southern England and carries roughly £20 billion in debt. The consortium has also named Mike McTighe as vice-chair designate, shifting him from the chair role previously envisaged for him while he continues leading the proposed overhaul.
The board plan follows the consortium’s earlier proposal to add former Yorkshire Water chief executive Liz Barber, former Department for Transport permanent secretary Dame Bernadette Kelly and former Openreach chief executive Clive Selley. The group has been seeking approval for a rescue involving debt reductions, new equity and possible stronger government oversight, including discussion of a government “golden share.”
Thames Water’s immediate financial position has added urgency to the negotiations. Talks with creditors and regulators remain unresolved, and no final decision has been made on whether the consortium’s rescue plan will proceed.
The proposal is being considered alongside the government’s public-ownership plans. Prime Minister Andy Burnham has pledged legislation allowing water companies to be brought into public ownership, while the government has also considered market-based options for Thames Water. A parliamentary committee has said a creditor takeover should be rejected, leaving the future ownership and governance of the company contested.
Hutton previously served as work and pensions secretary, business secretary and defence secretary under Tony Blair and Gordon Brown. He has also led organisations including Energy UK and the Nuclear Industry Association, and said the proposed leadership would focus on customer service and environmental stewardship.