Struggling UK utility firm Thames Water has announced the appointment of Chris Weston as its new chief executive, tasked with resolving the company’s financial woes. Weston, a former senior executive at Centrica, the owner of British Gas, will assume the role on January 8, replacing interim co-bosses Cathryn Ross and Alastair Cochran. Thames Water, the largest water supplier in the country, had been on the verge of emergency nationalization following the resignation of former boss Sarah Bentley in June. With a proven track record in regulated environments and improving business performance, Weston aims to deliver the necessary turnaround and improve the company’s performance in the coming years. Thames Water currently serves 15 million customers in London and the Thames Valley area, facing net debts of nearly £15 billion ($19 billion).
Last week, Thames Water reported a 57% plunge in profit after tax to £172.3 million for the six months ending in September. The company’s precarious financial situation had raised concerns within the government, leading to speculation about a potential public rescue plan. In July, Thames Water secured £750 million of new shareholder funding until 2025, falling short of its £1 billion target in addition to the £500 million secured in March.
Thames Water attributes its financial struggles to regulatory limits on price increases for customers and requires further support of £2.5 billion between 2025 and 2030. The company also seeks an extension on its £190 million debt, which matures in April next year. Criticized for inadequate investment in upgrading sewage networks, many of which date back to the 19th century, UK water companies face the need for costly improvements. Since their privatization in 1989 under Prime Minister Margaret Thatcher, these firms have accumulated over £60 billion in debt.
As Thames Water embarks on a new leadership era, the appointment of Chris Weston brings hope for the resolution of its financial challenges and the improvement of customer experience. Weston’s experience in regulated environments and turning around business performance bodes well for the future of the UK’s largest water supplier. With millions of customers relying on Thames Water for their water supply, the company’s focus on delivering a successful turnaround is crucial. The hopes are that Weston’s leadership will steer the company towards a more stable and prosperous future, ensuring reliable water services for its customers while addressing its financial difficulties.
