Remember the letter we wrote to the High Court Judge at the start of proceedings to authorise a £3Bn loan to Thames Water to add to its already unbearable £19Bn debt burden? It's in the previous blog.
We saw the process unfolding when people's minds were on Christmas and we realised that the Thames Water billpayer, who already pays about 33p in every £1 of annual charges just to service the interest and charges of the colossal borrowing that the company has taken on was about to get hit again. So, not only is money that could and should be spent on infrastructure and staff, spent on dividends and unjustified and excessive bonuses, it is also lost, to a massive extent, on interest payments on loans that expert research has shown were not required.
The £3Bn is planned to come at an interest rate above 9.5% ( I last remember these sky high rates in the 1980s) with huge fees that could bump this up to 20% and despite the company denying that billpayers will take the hit, as billpayers are the only source of funding, that looks like more water company smoke and mirrors, to be polite. Who else is going to pay for it?
We hoped the government would step in and take Thames Water into Special Administration; a natural and easily justified step depending on failure to comply with regulatory duties and financial stability and a legal process specifically designed to protect the customer and the country's infrastructure. However, not only has it decided to look the other way, the Water Minister, Emma Hardy refuses to tell us any more than it has not reached the required metric yet continues to refuse to tell us what that metric is - but it is set very high, she says! Seriously, how did 'accountability' get like this?
So, we were delighted to discover that the judicial system has not based itself on simply ignoring people and we received a response to our letter telling us how to engage in the process.
However, we are a small charity and while we have some excellent unpaid experts in various fields, entering this rarified environment populated by specialist lawyers would be a challenge at the best of times, so we were relieved and heartened when we received a pro bono offer from a barrister working in the field of finance and then another one from a specialist firm of solicitors to help present our position. We hope to make this the customer/public case, alongside the well-funded and represented water company (paid for by us customers - the irony!) and Class A creditors ( something many of us had not even heard of until a few months ago).
The Financial Times Journalist Gill Plimmer reported on this today
The links to the FT are all for the same article but have limited numbers so please try another if one is empty
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We have experts on our team and experts in our list of close contacts and we hope to be able to present an accurate and true picture of various key issues to fill in the gaps that we believe the other parties will not deal with; things that we think would otherwise be missing from what is brought to the Judge's view.
On top of this, we had the support of our local MP, Charlie Maynard when we delivered the letter and far from just turning up for the photo opportunity, he has remained with us and is working hard on the detail and putting himself directly in the line of fire.
It is important to be clear that this is not a party political issue, we have had cross-party support, especially vividly from councillors, since we started and that has remained with us as a unifying feature. This is a matter of law and public policy that affects us all; something to get right.
Many of you know how WASP has functioned over the years and that we pride ourselves on delivering accurate evidence and exposing the truth to drive change for the better. This is more of that and we are writing to the many groups who have an interest in a healthy water industry in the Thames region, to ask for support to the key points we have set out. In simple terms we want to see Thames Water under control in Special Administration, not being laid out for financial exploitation of its, and therefore the customers', vulnerable state.
We want environmental responsibility and at least, legality, excellent service and well-funded and valued staff who are allowed to do their job well, not forced to cut corners or face the public's anger.
If you haven't got a letter yet or we don't find you, below is a copy and, if you want to support us, please email info@windrushwasp.org title it 'Thames Water letter' and tell us you support the points made in the letter and give us a sentence or two on your views is you wish. We will forward these responses to the court. We only have until close of play Sunday 26th January to get these responses for submission so if you know anyone or any group you think should sign, please send this blog to them.
This is one of those moments - It is time to stand up fight for what you believe in. Please support us.
I am completely in agreement with the letter, and applaud your persistence in challenging Thames Water's right to take on more debt which we pay to service. Please continue to call for Special Administration so the current management can be overhauled and refocused on ending the pollution of our rivers.
I fully support the letter, the privatisation of all of our utilities leaves them wide open to abuse and corruption, loading up with unsustainable debt while personally creaming off obscene profits while Governments do nothing. Makes my blood boil ! Declare a National Emergency, Re nationalise the lot of them with no fake compensation and put in professional management with experience gained and promoted from within the industry, no more know nothing appointments to the Managing Executive !!!
I completely support the proposals laid out in your letter. Special Administration is desperately needed to give breathing space to identify how to fix this spiralling disaster.
I offer full support to your action aiming to prevent Thames Water taking on yet further debt. Has Thames Water forgotten its duty of service: to provide clean water for the health of their customers, as opposed to pumping profits for investors?
I supprt you 100%. I am beyond angry. I can’t believe the arrogance of TW to even try getting away with this. The state of our waterways is bordering on dangerous. I suspect we will soon be having to deal with Victorian diseases. If the High Court let then get away with this I doubt there will be anyone in the country who will ever trust them again.