THAMES WATER APPOINTS NEW BOSS – Pressure mounts on turnaround efforts of the company

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.

In June, 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.

It added that its turnaround plan would take longer than three years to complete.