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Thames Water has appointed business veteran Sir Adrian Montague as chairman because the troubled utility supplier seeks to shore up public and investor confidence.
The previous chairman of Anglian Water and insurance coverage big Aviva, Sir Adrian will substitute present chairman Ian Marchant, who introduced in April that he would stand down on the finish of this month.
His appointment, first reported by The Instances, comes simply days after chief executive Sarah Bentley stood down with out clarification this week, leaving a management vacuum on the firm and heightening considerations about its viability.
Following Ms Bentley’s departure Sky Information revealed that ministers and water regulator Ofwat were considering contingency plans within the occasion of the corporate collapsing, together with successfully taking it into state management by means of a particular administration regime.
Sir Adrian stated: “It’s a privilege to affix the Board of Thames Water and comply with Ian as chairman.
“I very a lot loved my earlier position within the water business and am happy to be re-joining the sector at a vital time given the challenges it presently faces.
“I now sit up for working with the Board and Government crew and Thames Water’s regulators and buyers, to concentrate on the corporate’s turnaround plan and its future financing wants to make sure it delivers on its obligations to serve its prospects and communities properly and profit the atmosphere.”
Sir Adrian, 75, has expertise tackling the implications of earlier failed privatisations, having been appointed chairman of British Vitality following a monetary disaster on the nuclear operator, and deputy chairman of Community Rail following the collapse of Railtrack.
His instant duties at Thames Water can be to reassure ministers and Ofwat about its monetary place and encourage shareholders to make good on a dedication to provide £1bn in contemporary fairness capital.
The corporate stated a yr in the past it deliberate to boost £1.5bn from shareholders to fund investments in “leakage and river well being”, with £500m already dedicated and one other £1bn “topic to sure circumstances”.
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Thames Water stated this week it’s working “constructively” with shareholders, together with Canadian and British pension funds and Chinese language and Abu Dhabi sovereign wealth autos, to safe the funding.
The corporate says the extra capital can be used to fund an £11bn program of works to deal with leaks and air pollution by 2025, however there are reviews that billions extra can be required to fulfill regulatory necessities.
Concern over Thames Water noticed shares in three listed water firms fall, with United Utilities down 3% and Severn Trent and Pennin, which serves prospects within the south west, each down round 5% in mid-afternoon.
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In an announcement Ofwat stated: “Total, the sector is constant to draw worldwide capital and is very enticing to long run buyers reminiscent of pension funds. Certainly, there was an extra fairness injection of round £2bn since 2020, with firms performing to strengthen their monetary place.
“Ofwat will proceed to maintain firms’ monetary resilience beneath shut scrutiny and work with firms to make sure they take motion to make sure that they’ve the monetary backing to ship for patrons and the atmosphere.”
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