Committee publication · Correspondence · 3 June 2026
Correspondence to Thames Water regarding its restructuring plan, dated 3 June 2026
From: Environment, Food and Rural Affairs Committee
Inquiry: Reforming the water sector
Summary
The EFRA Committee Chair requests Thames Water provide sections of a KKR due diligence report covering regulatory, employment, litigation, governance, creditor, environmental, and infrastructure matters. The request follows Thames Water's restructuring proposal involving London & Valley Water. The Committee offers assurances on confidentiality: information will be received only after Ofwat's decision, responses will not be publicised without Thames Water's consent, and sensitive data can be redacted with explanations provided.
Key findings
- Committee seeks due diligence material on regulatory compliance, staff/employment/pensions, pending litigation, corporate governance, creditor relationships, and environmental matters
- Infrastructure information requested limited to assets needing urgent repair within 5 years, replacement/repair costs, critical vulnerabilities, and maintenance backlogs from AMP7 onwards, with national security considerations acknowledged
- Committee has agreed not to publicise Thames Water's response directly, but will publish a high-level summary agreed with Thames Water beforehand
- Thames Water permitted to redact sensitive information (e.g. individual staff names) but must provide schedule explaining rationale for all redactions
- Chair seeks assurance that Thames Water's management retention scheme remains paused
Tone
ProceduralTopics
Key actors
Alistair Carmichael MP, Sir Adrian Montague, Thames Water, KKR, London & Valley Water, Ofwat, Environment, Food and Rural Affairs Committee
Notable line
“While I appreciate that this report contains highly commercially sensitive information, the EFRA Committee has nonetheless determined that it may contain information vital to our ongoing scrutiny of Thames Water's future.”
Key Quotes
“While I appreciate that this report contains highly commercially sensitive information, the EFRA Committee has nonetheless determined that it may contain information vital to our ongoing scrutiny of Thames Water's future.”
“I wish to receive this information only once Ofwat has announced its decision on the London & Valley Water restructuring proposal.”
“We will not unreasonably withhold consent to requests to remove information from this summary.”
Source · parliament.uk record ↗