Severn Trent boss calls for ‘social purpose’ firms to ward off nationalisation
In an email to other industry chiefs, Liv Garfield called on other bosses to bring together a new taskforce to cooperate with Labour.
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Your support makes all the difference.The boss of Severn Trent has called on other UK utility firms to position themselves as “social purpose” companies to appease the Labour Party and head off any future threat of nationalisation.
In an email to other industry chiefs, Liv Garfield called on other bosses to bring together a new taskforce to cooperate with Labour.
It comes as the sector faces intense scrutiny amid fears over financial instability at Thames Water, which has raised questions over the financing of the industry.
Ministers have already held talks to prepare themselves to seize control of Thames Water if necessary, according to reports, as the UK’s largest water company continues to seek new funding.
In the “highly confidential” email, first revealed by the Evening Standard, the CEO asked other utilities bosses to join 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 also comes after reports in the Times earlier this week that suppliers are drawing up plans which could increase household water bills by as much as 40%.