Thames Water Debate
Full Debate: Read Full DebateDepartment: Department for Environment, Food and Rural Affairs
Lord Sikka
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Thames Water
Lord Sikka Excerpts(1 month, 2 weeks ago)
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Baroness Hayman of Ullock (Lab)
The noble Lord is correct that how debt was leveraged was unsustainable. It has led us to a situation where companies—not just Thames Water—are saddled with a ridiculous amount of debt that the regulator should have had more of a grip on. I am happy to discuss further the noble Lord’s thoughts on this. We have had discussions before. When we come to the next water Bill, making sure that we get the regulator correct will be crucial.
Lord Sikka (Lab)
My Lords, on 9 June the Minister said that
“we consider the regulated capital value of the water sector to be the closest proximity for the total value of the sector’s debt and equity; it is currently £107 billion”.—[Official Report, 9/6/26; col. 1241.]
On that basis, Thames Water is worth £21.893 billion. The London & Valley Water consortium has offered £3.35 billion to take control. Can the Minister explain why the Government believe that regulated capital value is the closest proximity to total value?
Baroness Hayman of Ullock (Lab)
It is because that is the generally understood figure. That is why we go with that figure.