Thames Water’s biggest creditors have named former cabinet minister Lord John Hutton as their choice to chair the struggling water giant if their rescue takeover goes ahead.
The London & Valley Water consortium (L&VW) — which holds a major chunk of Thames Water’s £20 billion debt — announced on Tuesday that Lord Hutton has been selected as Independent Chair Designate of a proposed new board.
10-year turnaround
If the acquisition and recapitalisation proceeds, Lord Hutton would take responsibility for overseeing Thames Water’s 10-year turnaround and comprehensive transformation, working closely with the management team in the interests of customers, the public and the environment.
The consortium also named Mike McTighe as vice-chair designate.
Heavyweight credentials
Lord Hutton brings substantial experience across public policy, energy and infrastructure. After leaving frontline politics, he led the landmark 2011 Independent Public Service Pensions Commission and subsequently chaired major industry bodies including the Nuclear Industry Association, Energy UK and manufacturing association Make UK.
He has held board and advisory positions across the energy, defence and infrastructure sectors, including as Chair of London Luton Airport and Non-Executive Director of Scottish Power Energy Networks.
As an MP for Barrow and Furness from 1992 to 2010, he served in the Cabinets of Tony Blair and Gordon Brown — including as Secretary of State for Work and Pensions, Secretary of State for Business and Secretary of State for Defence.
What happens next
The appointment remains subject to L&VW’s proposals being taken forward and the completion of Ofwat’s onboarding process for board directors.
The consortium — which includes UK and US investment firms such as Elliott Management, Aberdeen Investments and Apollo Global Management — has previously said it is looking at offering a “golden share” to the Government as part of a revised rescue deal.
Thames Water serves around 16 million customers across London and the South East, making the outcome of the rescue bid one of the most significant business stories in the capital.
The Government has said it would prefer a “market solution” for Thames Water — though the Environment, Food and Rural Affairs Committee of MPs said last month it believes the potential lender takeover should be rejected.
London Streets will continue to follow the Thames Water rescue saga.
