What is to be done about the UK’s failing utilities? Listen to Professor Dieter Helm explore the options to tackle the UK’s failing utilities – Thames Water, the Royal Mail and Network Rail in particular.

The current back-stop is special administration, opening up the possibility of wider restructuring. In all cases it is the structure that needs to change if there is to be a stable investment framework for the next couple of decades.

In the case of Thames Water, Helm suggests that special administration would provide a great opportunity to break Thames up, both geographically and by service which would not lead to any increase in government spending other than very short-term guarantees on the debt.

In addition, there could be a London Water and a Greater Thames Water, divided between sewerage and water supplies, all listed. Separating out sewerage could help to deal with the large CAPEX required through a ring-fenced ten-year improvement programme, with bespoke regulation and longer-term funding and finance arrangements.

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