T
he boss of Severn Trent has referred to as on different UK utility companies to place themselves as “social purpose” corporations to appease the Labour Party and head off any future menace of nationalisation.
In an electronic mail to different business chiefs, Liv Garfield referred to as on different bosses to carry collectively a brand new taskforce to cooperate with Labour.
It comes because the sector faces intense scrutiny amid fears over monetary instability at Thames Water, which has raised questions over the financing of the business.
Ministers have already held talks to organize themselves to grab management of Thames Water if needed, in response to reviews, because the UK’s largest water firm continues to hunt new funding.
In the “highly confidential” electronic mail, first revealed by the Evening Standard , the CEO requested different utilities bosses to affix an “off-the-record roundtable”.
Ms Garfield added: “Whilst it is clear Labour will not include nationalisation in its next manifesto, they are also not keen on entering into the election race championing the status quo.
“The leadership thinks there is room for improvement and, politically, there is significant pressure to ‘do something’ about utilities.
“One idea we believe might be attractive to the Labour leadership is re-purposing utilities and utility networks into a new breed of declared social purpose companies – companies that remain privately owned, who absolutely can (and should) make a profit, but ones that also have a special duty to take a long-term view.”
It additionally comes after reviews within the Times earlier this week that suppliers are drawing up plans which may improve family water payments by as a lot as 40%.
