Overview

• KKR pulled out of a £4bn Thames Water rescue deal this month, heightening the risk of special administration or state intervention
• The government is assessing the use of temporary nationalisation powers to stabilise debt-laden water firms
• An EFRA select committee report calls for root-and-branch reform and proposes that Ofwat gain authority to approve or block executive bonuses and shareholder dividends
• MPs are urging the independent commission to consider not-for-profit, community and co-operative ownership models after Welsh Water showed greater financial resilience under non-profit status
• Water UK projects a record £104bn investment over five years to upgrade infrastructure and cut sewage discharges in response to widespread environmental damage