Nationalizing Water Would Cost £140 Billion, Burnham Is Warned

Thames Water creditors told the UK government nationalization would cost £40B ($53.8B) more than previously estimated to take over England’s water companies. The stated aim is to deter PM Andy Burnham from taking “extreme steps” to increase public control of the sector. The revised £40B figure raises fiscal/regulatory uncertainty around the timing and scale of any intervention.

Analysis

Thames Water creditors told the UK government nationalization would cost £40B ($53.8B) more than previously estimated to take over England’s water companies. The stated aim is to deter PM Andy Burnham from taking “extreme steps” to increase public control of the sector. The revised £40B figure raises fiscal/regulatory uncertainty around the timing and scale of any intervention.