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UK prime minister considers insolvency law changes for utilities

The proposal could face a legal challenge from Thames Water creditors, who have pledged to fight any attempt to alter the insolvency rules.

Reported · Written up by our desk · Industry

The Guardian reports that UK Prime Minister Andy Burnham is considering changes to insolvency laws to make it easier to bring key utilities, including Thames Water, under public control.

One option under review is adjusting the special administration regime, which could allow utilities to enter insolvency proceedings first, then be taken over afterward, potentially supporting Burnham’s promised 10-year push for public ownership.

The outlet adds that the move could trigger legal action from creditors, with Thames Water saying it would fight any attempt to change the insolvency framework.

In June, Burnham said he favored public ownership of Thames Water, which is struggling with about £20 billion of debt, and a government source said the approach is aimed at giving the public more control and helping keep bills low, according to The Guardian.

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