Prospect of Thames Water nationalisation looms after shareholders cancel investment – business live

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09.54 GMT Prospects for Thames Water nationalisation increase after funding collapse The chances of Thames Water being nationalised have risen after shareholders refused to inject £500m in emergency funding. The shareholders rejected conditions by the water regulator, Ofwat, that would have damaged their financial returns. Thames Water’s boss, Chris Weston, today said that if no funding could be found by the end of next year there was a prospect of special administration, under which the government takes control of failed essential utilities. However, Weston said “we are a long way from that point at the moment”. The Liberal Democrats have said the government should immediately take control of Thames Water’s operations and then nationalise it. Labour, which is likely to lead the next government, according to polls, said it would make sure that “new investment comes through to fix the broken sewage system without taxpayers being left to foot the bill”. It did not mention nationalisation. The Green party’s Lady Jones has suggested that Thames Water should be allowed to fail, so that it can be taken into public ownership “on the cheap.” Speaking to the Guardian’s environment correspondent, Helena Horton, Jones said: