Sir Adrian Montague has resigned as Chairman of Thames Water’s parent company Kemble Water Holdings.
The news came in an update to the markets on Friday morning which said:
“A statement issued to Thames Water Utilities Finance plc has been informed that Sir Adrian Montague, Chairman of Thames Water Utilities Ltd (TWUL), has resigned as Chairman and director of Kemble Water Holdings Ltd, TWUL's ultimate parent company, and as a director of each of Kemble's subsidiaries, other than TWUL and Thames Water Utilities Holdings Ltd.
"This is a personal decision as Sir Adrian believes the time is right solely to focus on fully supporting the Board and Executive Team of TWUL on delivering the refocused turnaround plan in order to better meet our customers' needs."
Sir Adrian Montague remains a director and Chairman of Thames Water.
The changes are effective from 17 February 2024.
Thames Water announced his appointment as Director and Chairman of Thames Water Utilities Ltd on 30 June last year, three days after Thames announced that Sarah Bentley had resigned as Chief Executive of the company. Alastair Cochran and Cathryn Ross assumed the role of joint interim CEO with immediate effect.
Sir Adrian took up his role as Chairman on 10 July 2023.
Thames Water Chair - “we were very fragile in July”
In December Sir Adrian appeared alongside interim co-chief executives in a live evidence session before the House of Commons Environment Food and Rural Affairs Committee in its inquiry into Thames Water finances.
Sir Adrian Montague told the Committee:
"This is a seminal moment for Thames. You know, we were very fragile in July."
Questioned on a £37.5 million dividend payment, Sir Adrian suggested that a failure to give dividends “would curtail or derail the possibility of receiving further equity from our shareholders”. The payment is now being further investigated by Ofwat.
He attributed Thames Water’s financial woes in part to bills being kept “very low” by Ofwat in previous years, saying:
“I think we would say that some of the problems that we are now encountering were because bills were kept deliberately very low over the past period.”
In January the Department for Environment, Food and Rural Affairs quietly amended insolvency legislation to update the Water Industry Special Administration Regime (WISAR) for water companies in England and Wales.
An accompanying Memorandum commenting on why the WISAR is being changed says:
“Given the recent market instability in the energy and banking sectors and the need for HMG intervention in certain instances, e.g., Bulb’s special administration, Defra reviewed its powers should a water or sewerage undertaker or qualifying water supply licensee become insolvent or not meet its statutory duties, and the government had to apply for a special administration order (SAR).....
“The WISAR is seen as the ultimate enforcement tool in the case of performance SARs, and in both insolvency and performance SARs ensures consumers are protected from the impacts of financial distress and that water and wastewater services will continue to be provided.”
The troubled water company has faced a succession of challenges in recent months over the state of its finances, including:
January 2024
Thames Water reschedules debt as it seeks time to stabilise finances
December 2023
Financial woes at Thames Water continue as Fitch Ratings downgrades holding company Kemble to 'CCC'
Thames Water - second credit rating downgrade in six months for parent company Kemble
Thames Water and Ofwat CEOs and Chairs under intense questioning in grilling by EFRA Committee
Ofwat raises queries with Thames Water over £37.5 million dividend payment to shareholders
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