Thames Water lenders to appoint Lord Hutton as independent chair in takeover bid

Thames Water’s creditors have revealed plans to appoint former business secretary Lord John Hutton as an independent chair of the water supplier if their rescue bid is given the green light to avoid it being nationalised.The London & Valley Water consortium, a group made of lenders to the utility giant, said Lord Hutton has been selected as its choice as independent chair designate for the firm.It comes two months after the group said it would appoint four new directors to the Thames Water board if its move was successful.This also included former Yorkshire Water chief executive Liz Barber, Dame Bernadette Kelly, the former permanent secretary at the Department for Transport, and Clive Selley, ex-chief executive of BT Openreach.Former business secretary Lord John Hutton said he is looking forward to the role (Tim Ireland/PA)PA ArchiveAs independent chair, Lord Hutton would take on responsibility for overseeing Thames Water’s 10-year turnaround programme.The peer served as MP for Barrow and Furness from 1992 to 2010, holding a number of cabinet roles including work and pensions secretary, business secretary and defence secretary.The consortium – including UK and US investment companies such as Elliott Management, Aberdeen Investments and American private capital firm Apollo Global Management – previously said it was looking at offering a “golden share” to the Government as part of a revised rescue deal.Prime Minister Andy Burnham has signalled he wants to bring in a 10-year plan to renationalise the water industry, saying reform is needed to put the public interest first.But the Government has said in the past it would prefer a “market solution” for Thames Water, which has around 16 million customers across London and the South East.However, the influential Environment, Food and Rural Affairs Committee of MPs said last month it believes the potential takeover by lenders should be rejected.Lord Hutton said: “I am looking forward to being part of the new leadership at Thames Water and helping get this hugely important business into a better place.Read More“People living in London and the Thames Valley have the right to expect the highest possible standards of customer service and proper environmental stewardship from their water company, and that will be our focus as we look to the future.”Mike McTighe, vice-chair designate, said: “I am delighted that John has agreed to join this team of committed individuals who are ready and willing to apply full dedication to transforming Thames Water’s infrastructure and building a culture in which the customers and local communities come first.“Thames Water provides the most essential public service, and it is critical that we create a strong public-private partnership to rebuild trust with the customers and public.”