Sadiq Khan’s newly appointed deputy mayor for the environment, Mete Coban, is gearing up for a showdown with Thames Water over proposed price hikes for Londoners. The water company has announced the need to increase customer bills by almost 60% by 2030 in order to tackle its massive £14 billion debt. This comes as a response to Ofwat’s draft determination on water company plans, with Thames Water suggesting a £228 annual increase in household bills.
Mete Coban, who took on his role in July, is adamant that Londoners should not bear the burden of Thames Water’s financial troubles. He plans to meet with the company to discuss the impact of their proposed price hikes and seek assurances that they have a solid plan in place to address the situation.
While some have suggested nationalising Thames Water as a solution, Mayor Sadiq Khan has expressed caution, emphasising the importance of using taxpayers’ money sensibly. He believes that it is unfair for hard-working Londoners to foot the bill for the failures of a privatised company, especially considering the significant debt that Thames Water has accumulated since its sale.
During a discussion at the London Assembly, concerns were raised about the company’s financial situation, with Thames Water starting with zero debt when it was privatised and now facing a substantial amount. Despite calls for nationalisation, Mr. Khan remains wary of using public funds to bail out a company that has struggled to manage its finances effectively.
As the debate continues, it is clear that both Mete Coban and Sadiq Khan are committed to ensuring that Londoners are not unfairly burdened by Thames Water’s financial woes. Their focus on holding the company accountable and seeking a viable solution that does not place additional strain on taxpayers demonstrates a dedication to responsible governance and financial management in the public interest.
