Recommendation 7

We recommend that the government reject the proposals from the London & Valley Water consortium and explore all potential alternative options, including the Special Administration Regime or fresh legislation, to draw a line under this debacle and restore stability to the sector by putting Thames Water on a sound footing for new owners. The government should use all powers at its disposal to ensure that, in the long run, water company pensions and taxpayers’ money are protected. If emergency legislation is required for Thames Water, it should be limited in scope so this does not become a precedent for widescale government intervention. (Recommendation, Paragraph 29)