UK Plans Thames Water Special Administration Amid Debt, Chinese Buyout Contention

The UK government, led by Environment Secretary Steve Reed, is actively preparing to place Thames Water into a special administration regime (SAR) to effectively nationalize the heavily indebted utility and wipe out much of its £16.8 billion debt. FTI Consulting has been appointed to advise on contingency plans and could act as the administrator if the SAR is enacted, ensuring continued water services while the government searches for a new buyer. A leading contender to acquire Thames Water is the Hong Kong-based Chinese infrastructure firm CKI, which already owns several UK utilities and has pledged to comply with tougher environmental fines. The move has raised concerns over potential government coordination with CKI prior to formal announcements, as well as political implications given CKI's links to the Chinese state. Critics worry about the financial burden on taxpayers, as the bailout costs from SAR could reach billions amid strained public finances. Despite efforts to avoid temporary public ownership, government sources acknowledge that an SAR and subsequent sale to CKI appear to be the most viable solutions to the company’s financial crisis.