Creditors propose new board to avert Thames Water nationalisation

The creditors seeking to rescue Britain’s largest water supplier have announced plans to install a new board of directors in a move aimed at securing government approval and preventing a collapse into state control. On August 24, 2026, the London Valley Water consortium, which holds £17 billion of Thames Water’s debt, proposed four senior figures to oversee the utility if its rescue plan is accepted. The appointments are intended to demonstrate strong governance and reassure ministers that the heavily indebted company can be rebuilt under private ownership.

The proposed board would include Liz Barber, the former chief executive of Yorkshire Water, and Dame Bernadette Kelly, a former permanent secretary at the Department for Transport. They would be joined by Clive Selley, the former chief executive of BT Openreach, and Mike McTighe, an infrastructure specialist and former chair of Openreach who is already advising Thames Water and has been named as the consortium’s candidate for chairman. “The challenge at Thames Water is huge,” Mr. McTighe said in a statement. “If this recapitalisation plan is accepted, we will apply full dedication as a new board, working alongside the...