A group of lenders to Thames Water has announced plans to install Lord John Hutton as independent chair of the struggling utility company should its rescue proposal be approved.
The London & Valley Water consortium, comprising creditors of the water provider, disclosed that Lord Hutton had been chosen for the role of independent chair designate.
The appointment would take effect if the consortium’s restructuring plan receives regulatory approval, preventing the company’s nationalisation.
Lord Hutton received his education at Oxford University’s Magdalen College, where he obtained a Bachelor of Arts degree in 1976 and a Bachelor of Civil Law in 1978.
He subsequently returned to the university between 1980 and 1981 to serve as a Research Associate at Templeton College.
This development follows an earlier announcement by the consortium two months prior, revealing intentions to appoint four new directors to Thames Water’s board.
The proposed board members include Liz Barber, former chief executive of Yorkshire Water; Dame Bernadette Kelly, who previously served as permanent secretary at the Department for Transport; and Clive Selley, former chief executive of BT Openreach.
In the proposed position, Lord Hutton would assume responsibility for supervising Thames Water’s ten-year recovery and transformation programme.
The peer represented the constituency of Barrow and Furness as a Member of Parliament from 1992 until 2010, during which time he held several senior cabinet positions.
These included the roles of work and pensions secretary, business secretary, and defence secretary.
The consortium comprises investment firms from both the United Kingdom and United States, among them Elliott Management, Aberdeen Investments, and American private capital group Apollo Global Management.
The group has previously indicated it was considering offering the Government a so-called golden share as part of a revised rescue package.
Mayor Andy Burnham has expressed support for implementing a ten-year strategy to bring the water industry back into public ownership, arguing that reform is necessary to prioritise public interests.
Government representatives have previously indicated a preference for a market-based resolution to Thames Water’s difficulties, with the company serving approximately 16 million customers across London and the South East region.
The influential Environment, Food and Rural Affairs Committee of MPs stated last month that the proposed takeover by the consortium of lenders ought to be rejected.
Lord Hutton stated that he anticipated joining the new leadership team at Thames Water and contributing to improving the organisation’s position.
He emphasized that residents of London and the Thames Valley deserved to expect the highest standards of service delivery and responsible environmental management from their water provider, and that these objectives would guide their approach going forward.
Mike McTighe, designated as vice-chair, expressed satisfaction that John had agreed to join a group of individuals prepared to commit fully to upgrading Thames Water’s infrastructure and fostering an organisational culture that prioritised customers and local communities.
He noted that Thames Water delivered one of the most fundamental public services and that establishing a robust public-private partnership would be essential to restoring confidence among customers and the general public.