Committee publication · Correspondence · 9 June 2025
Correspondence to the Secretary of State regarding Thames Water Management Retention Plan and ownership developments, dated 9 June 2025
From: Environment, Food and Rural Affairs Committee
Inquiry: Reforming the water sector
Summary
The EFRA Committee writes to the Secretary of State for Environment, Food and Rural Affairs regarding Thames Water's Management Retention Plan (MRP) payments and KKR's withdrawn takeover proposal. The committee challenges discrepancies between the Secretary of State's earlier testimony that Thames had 'dropped' the scheme and Thames Water's Chair's recent statement that it is merely 'paused'. The letter raises concerns about £millions in payments already made to 21 senior executives and seeks clarification on the government's regulatory and oversight position.
Key findings
- Thames Water Chair stated the MRP scheme is 'paused' pending regulator guidance, contradicting the Secretary of State's May testimony that it had been 'dropped'
- First tranche of 50% base salary payments (to 21 senior executives) was made 30 April 2025; Thames Water board states it does not intend to recover these payments
- Committee questions whether the scheme constitutes an attempt to circumvent the Water (Special Measures) Act's new powers to block bonuses for failing water companies
- Committee seeks clarity on Department's position regarding use of regulatory powers and any alternative oversight mechanisms
Tone
ProceduralTopics
Key actors
Steve Reed, Thames Water, Environment, Food and Rural Affairs Committee, Ofwat, KKR, Thames Water Chair
Notable line
“Thames "appeared to be attempting to circumvent that ban, calling their bonuses something different so they can continue to pay them", and that they had now "dropped these proposals".”
Key Quotes
“Thames "appeared to be attempting to circumvent that ban, calling their bonuses something different so they can continue to pay them" …”
“… the scheme has not been withdrawn but "paused" awaiting guidance from the regulator.”
“… the first tranche of 50% of base salary payments to 21 senior executives was made on 30 April and that its board "does not intend to recover" these payments.”
Source · parliament.uk record ↗