Overview

• Thames Water paid £2.46 million in April to 21 senior managers under a Management Retention Plan funded by a £3 billion emergency loan and has declined to recover the payments.
• Ofwat’s chief executive confirmed the payouts fall outside the scope of the Water (Special Measures) Act bonus ban because none were made to board members.
• The Management Retention Plan has been paused since May pending regulator guidance.
• The Environment, Food and Rural Affairs Committee has summoned Sir Adrian Montague, CEO Chris Weston and other executives to give evidence on July 15 and has requested minutes of board discussions related to KKR’s withdrawal.
• KKR’s exit from a proposed £4 billion rescue deal has left Thames Water facing continued recapitalisation talks and the possibility of temporary government nationalisation if no market-led solution emerges.