MPs urge ministers to break off Thames Water talks with US hedge funds

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Published: 2026-09-18T05:10:32.885Z • Permanent link

MPs from the UK's cross-party group, led by Labour's Shadow Minister for Environment, Thangam Debbonaire, have called for emergency legislation to break off talks with US hedge funds over Thames Water's potential sale. This move comes as Andy Burnham, the Mayor of London, is under increasing pressure to take control of the ailing water company. Thames Water, which supplies over 15 million customers across London and the South East, has been plagued by severe leaks, aging infrastructure, and high customer complaints.

Thames Water's struggles have been well-documented, with the company's debt now standing at over £10 billion. The UK government has been in talks with US hedge funds, including Apollo Global Management and KKR, over a potential sale. However, these talks have been met with fierce opposition from MPs, who argue that the sale would prioritize profits over the well-being of customers. Debbonaire has stated that the government must prioritize the interests of the public and take control of the company to ensure that it is run in the best possible way.

Burnham, who has been a vocal critic of the potential sale, has vowed to take control of the company if necessary. He has stated that the Mayor of London has a duty to protect the interests of Londoners and will do everything in his power to prevent the sale. The UK government has yet to comment on the MPs' calls for emergency legislation, but sources close to the negotiations have indicated that the talks are at an impasse.

The potential sale of Thames Water would have far-reaching consequences for the Global Infrastructure domain. The company's failure to invest in its aging infrastructure has led to severe leaks and customer complaints, with many arguing that the company is not doing enough to address the issue. The sale to US hedge funds would prioritize profits over customer interests, potentially leading to further financial struggles for the company.

Research communities and markets have also taken notice of the potential sale. A recent report by the Water Services Regulation Authority (Ofwat) highlighted the need for Thames Water to invest in its infrastructure to ensure that it can meet the demands of a growing population. The report also noted that the company's current business model is unsustainable and that a sale to private investors would be the only way to ensure its long-term viability. The potential sale has sparked concerns among researchers and policymakers, who argue that it would have significant implications for the UK's water infrastructure.

This move comes as the UK government grapples with the challenges of regulating the water industry. In recent years, there have been several high-profile cases of water companies being found guilty of price-gouging and failing to invest in their infrastructure. The government has responded by introducing new regulations and increasing the cap on water prices. However, critics argue that these measures are insufficient and that the government must do more to ensure that water companies are run in the public interest.