Thames Water creditors name Lord Hutton as chair designate

A consortium of creditors known as London & Valley Water has selected Lord John Hutton to serve as the independent chair designate for Thames Water, should their proposed rescue plan be approved. The move is part of an effort to implement a 10-year turnaround programme and keep the utility company in private hands, thereby avoiding potential nationalisation.

Lord Hutton, a former business secretary and MP, would oversee the new board alongside other proposed directors, including former Yorkshire Water CEO Liz Barber and former BT Openreach CEO Clive Selley. The consortium includes major investment firms such as Elliott Management, Aberdeen Investments, and Apollo Global Management. To appease the government, the group has previously suggested offering a ‘golden share’ as part of a revised deal.

The rescue bid comes amid political pressure from Prime Minister Andy Burnham, who has signaled a desire for more radical options to reform the water industry, including potential renationalisation. While the government has previously expressed a preference for a market-based solution, the Environment, Food and Rural Affairs Committee recently suggested that the lenders' takeover bid should be rejected.