Whitehall officials were fate Times water Since the Treasury Ministry told the Ministry of Environment that it will have to meet the cost of temporary nationalization in billions of pounds.
The largest water company in Britain came within days of money running out. The Times in a desperate race to find a buyer ready to inject money, with the private stock company in the United States KKR at the Pole Center.
However, if this acquisition fails, the indebted tool can collapse in the hands of the state through the SAR system.
Current budgets in the Department of Environment, Food and Rural Affairs, which are described by the informed as it actually extends, must be used to meet the burden of preserving the Times water Stand on his feet if the bids fail to save the company, according to the sources.
The sources said that this pressure to find a solution to the private sector instead of saving the state helps in forcing the KKR offer, with possible challenges in the long term and the costs associated with it.
Sources said that some estimates indicated that temporary nationalization may cost up to 4 billion pounds over 18 months, a number used by major treasury officials in discussions with their counterparts in Davra. With the total annual DEFRA budget for last year at a value of 4.6 billion pounds, the costs can be paralyzed.
The departments spent months pending hearing what it means to review the advisor on its budgets. This is detected by Rachel Reeves on June 11. The veil was revealed Significant discounts To the general Whitehal spending in its spring statement.
The Times River case causes what is called a “bilateral choice” for the organizers and the central government: the highest customers ’bills, but the allocated tool for the so -called other” possible catastrophic discounts “to defraud a budget. Several sources said that this is not the case if the Treasury is following a different approach.
The threats that suggested the fraud budget were an example of “fear tactics” to close the discussion about other options for Arama.
The cost of the Times nationalization, which serves nearly 16 million customers in London and the Times Valley.
The company is wrestling with Jabal, more than 20 billion pounds of debt, amid increasing pressure To invest in its sick assets and Allocated amounts to expected future organizational fines And costs. The debt levels are so large that some of the Times offers suggested that it would be better to enter temporary nationalization, in order to force creditors to accept severe losses and make the company more applicable in the long run.
Consultant, Tenio made estimates What can cost a temporary nationalization of the government as part of the last court case. He claimed that he could reach 3.4 billion pounds to 4.1 billion pounds in 18 months.
The author of the TENEO report, Matthew Cowlishaw, worked on the temporary nationalization of the power company bulb. TENEO suggested that if the Times is nationalized, customers are likely to refuse to pay their bills, the government will demand a interest rate of about 10 % on any loans for the company, and employee wages will have to rise by about 20 % to prevent them from leaving.
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However, some economists and industry experts wonder whether there will be any long -term cost of the government ever in a temporary nationalization, as many have noticed the example of the lamp.
It was the energy company It was temporarily nationalized across the SAR Road in 2021 Before being taken by the competitor octopus, which In the end, he paid 3 billion pounds to the cabinet. This payment means the government I regained almost all its costs from the emergency scale.
If the Times is temporarily reshaped, the government will be ranked first in the attackers’ order to recover its funds and can restore all the money spent on its financing when the company was eventually sold, while forcing other lenders to suffer severe losses on their loans.
Even if it is possible to prefer to solve the private market, the Whitehall sources added, she was strongly criticizing the lack of transparency on BID KKR. This anxiety was repeated by several sources in the organizers as well.
“The company [Thames Water] It is still stable and the government is closely monitoring the situation. It will be more appropriate to comment on the financial issues of a private company. “
