A consortium of creditors working to secure a £10 billion rescue package for Thames Water has appointed former UK government minister Lord John Hutton as independent chair designate, should their proposed takeover of the utility proceed.
The creditor group, named London & Valley Water, announced the appointment on Tuesday as part of efforts to gain government backing for its restructuring plan. The consortium has been engaged in ongoing discussions with ministers and regulators regarding the future ownership of the financially distressed water company, which serves approximately 16 million customers across southern England.
Recent developments include directives to Andy Burnham urging a reassessment of current recovery strategies, with calls for more ambitious options to address the company’s challenges. Previously, Burnham had indicated intentions to pursue nationalization if he became prime minister.
Thames Water has struggled for years to avoid insolvency and faces severe liquidity constraints. In a recent move, the company requested an additional £2.4 billion from its creditors to maintain operations.
Alongside Hutton’s nomination, Mike McTighe—a specialist in telecommunications and corporate turnaround—will provide strategic support during the potential transition. Initially slated to succeed Sir Adrian Montague as chair in August, McTighe has instead been named vice-chair designate and is set to collaborate closely with existing management teams.
Hutton brings extensive experience across public policy, energy, and infrastructure sectors. His ministerial career under Tony Blair and Gordon Brown included roles such as Work and Pensions Secretary, Business Secretary, and Defence Secretary. He also chairs the Nuclear Industry Association, Energy UK, and manufacturing body Make UK, among other prominent positions including chairing the Association of Infrastructure Investors and London Luton Airport, and serving as non-executive director of Scottish Power Energy Networks.
Hutton stated: “I am looking forward to playing a role in the new leadership at Thames Water and assisting in guiding this critically important organization toward a more stable future.”
“Residents throughout London and the Thames Valley deserve the highest levels of customer service and responsible environmental practices from their water provider, and that remains our central priority moving forward.”
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