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MPs letter to OFWAT CEO and Environment Secretary Emma Reynolds

Dear Chris Walters, interim CEO of Ofwat and Emma Reynolds, Secretary of State for Environment, Food and Rural Affairs

We are deeply concerned that Ofwat is currently poised to accept a deal from Thames Water’s creditors that would enable them to dodge fines for four years [1]. We are writing to urge you to reject this deal.

This deal would completely undermine regulation of the water industry.

Under the terms of the proposal, Thames Water’s fines from Ofwat would be waived until 2030, and their pollution targets suspended or “significantly modified”.

Dirty Business recently revealed the horrifying consequences of sewage pollution. During a cost of living crisis, households are facing steep bill hikes for a broken system.

In the first six weeks of 2026 alone, Thames Water dumped 80,000 hours of sewage into our waterways [2]. Freeing them from fines now would be a catastrophe for our rivers and seas, and a grave danger to public health.

This deal impacts every single household in England. By signing off, you would set a clear precedent for all privatised water companies: that they will be rewarded for their failure by being allowed to set their own rules and regulations.

Thames Water has been in breach of its licence conditions since July 2024 [3]. Under special administration, we can write off a greater portion of Thames Water’s debt, and secure a better deal for the public purse [4].

In the interests of our constituents, we urge you to reject this outrageous deal, and place Thames Water in Special Administration without delay.

We call on you to make the right decision for our constituents and our environment.

Yours sincerely,

Clive Lewis MP
Layla Moran MP
John McDonnell MP
Charlie Maynard MP
Diane Abbott MP
Freddie van Mierlo MP
Simon Opher MP
Emma Lewell MP
Ben Lake MP
Bobby Dean MP
Kate Osborne MP
Melanie Onn MP
Hannah Spencer MP
Adrian Ramsay MP
Carla Denyer MP
Sian Berry MP
Ellie Chowns MP
Steve Witherden MP
Barry Gardiner MP
Mary Foy MP
Nadia Whittome MP
Ian Byrne MP
Cat Smith MP
Kim Johnson MP
Zarah Sultana MP
Chris Hinchliff MP
Paula Barker MP
Neil Duncan-Jordan MP
Graham Stringer MP
Cat Eccles MP
Margaret Mullane MP
Bell Ribeiro-Addy MP
Marsha de Cordova MP
Iqbal Mohamed MP
Roz Savage MP
Lee Dillon MP
Kate Osamor MP
Valerie Vaz MP
Paul Davies MP
Richard Burgon MP
Rachael Maskell MP
Luke Taylor MP
Will Forster MP
Tom Morrison MP
Joshua Reynolds MP
Ben Maguire MP
Sarah Olney MP
Dr Brian Mathew MP
Monica Harding MP
Marie Goldman MP
Alison Bennett MP
Wera Hobhouse MP
Caroline Voaden MP
John Whitby MP
Danny Chambers MP
Helen Maguire MP
Lee Barron MP
Richard Foord MP
Apsana Begum MP
Sean Woodcock MP
Victoria Collins MP
Peter Prinsley MP
Jonathan Brash MP
Wendy Chamberlain MP
Olly Glover MP
Ian Roome MP

References:

[1] ‘Ofwat poised to waive Thames Water fines to 2030 under deal’, FT - https://www.ft.com/content/070d9030-0314-41dd-9630-63c893b199b0?syn-25a6b1a6=1

[2] ‘Sewage spills in London and South East worse than ever this year’, the I paper - https://inews.co.uk/news/sewage-spills-london-south-east-worse-ever-4235315?srsltid=AfmBOopsbwvWUAC5PdNtoVc4Up9YvOaBpFH6lcG0ITLFN_fJ09xl30fj

[3] ‘Thames Water breaches licence conditions with fresh rating downgrade’, FT - https://www.ft.com/content/16640b07-688d-4dff-a870-cb476be470f4?syn-25a6b1a6=1

[4] Thames Water’s creditors have offered a debt write-off of up to 30%. Much more debt would be written off under Special Administration. The previous government’s plans under Project Timber involved a 40% debt haircut for some creditors. We could cut more. 'Thames Water nationalisation plan could move bulk of £15bn debt to state’, The Guardian - https://www.theguardian.com/business/2024/apr/18/whitehall-blueprint-for-thames-water-nationalisation-could-see-state-take-on-bulk-of-15bn-debt

MPs letter to OFWAT CEO and Environment Secretary Emma Reynolds

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