Committee publication · Correspondence · 20 May 2025
Correspondence from Thames Water regarding Reforming the water sector inquiry oral evidence, dated 19 May 2025
From: Environment, Food and Rural Affairs Committee
Inquiry: Reforming the water sector
Summary
Thames Water's chairman Sir Adrian Montague clarifies testimony given to the committee on 13 May 2025 regarding the company's management retention plan during the 'Reforming the water sector' inquiry. He acknowledges potentially misspeaking when attributing the plan's origin to creditor insistence, clarifying instead that it arose from liquidity extension discussions, was creditor-agreed via term sheet, and funded through super senior funding to retain key staff during uncertainty.
Key findings
- Sir Adrian Montague acknowledged he may have misspoken during oral evidence when stating creditors insisted on the management retention plan
- The management retention plan actually originated from Thames Water's discussions related to liquidity extension transactions, not creditor demands
- The plan is funded through super senior funding and was reflected in the term sheet agreed with creditors
- The concept also appeared in the term sheet proposed by the ad hoc committee of Class B Creditors, which was not subject to management discussion
- The retention plan was deemed important to retain staff capable of delivering improved outcomes during the period of uncertainty
Tone
ProceduralTopics
Key actors
Sir Adrian Montague, Thames Water Utilities Limited, Environment, Food and Rural Affairs Committee, Alistair Carmichael, The Guardian, Class B Creditors
Notable line
“I appreciate that in the heat of the moment I may have misspoken when I stated that the creditors insisted on the management retention plan.”
Key Quotes
“I appreciate that in the heat of the moment I may have misspoken when I stated that the creditors insisted on the management retention plan.”
“I wanted to confirm that the concept of a management retention plan arose from our discussions related to our liquidity extension transaction, and is funded through the super senior funding.”
“It was agreed that a retention plan was important to retain the people best placed to deliver the improved outcomes our stakeholders rightly expect during this current period of uncertainty and this was reflected …”
Source · parliament.uk record ↗