Thames Water - comment

Reports of Rachel Reeves calling for a “market-based solution” and demanding in a letter to creditors that any solution must result in a “successful turnaround” are music to our pragmatist ears that have recently been suffering through a cacophony of threats, ignorance and at best cognitive dissonance from the regulators involved. A call from the government as to the direction of the preferred solution should streamline what currently seems a very diverse conversation. Meanwhile, Castle Water are rearing their head with reports of renewed funding for a however crafted €4bn injection. We are not expecting a solution to these three-way negotiations before year-end.