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From: Denc 🗡
When you are down and out, people come to fcuk you…. Lie back and think of the England that was Foreign investor that loaded Thames Water with debt takes control of UK gas network The former owner of Thames Water is to take full control of Britain’s gas network in a £700m deal. Australian investment giant Macquarie is to buy the 20pc of Britain’s National Gas that it does not already own, handing it full control of a piece of critical national infrastructure. Macquarie is best known in the UK for buying Thames Water in 2006 in conjunction with a string of offshore pension funds. It has drawn heavy criticism for loading up the water company with debt during its ownership. Under Macquarie’s watch, Thames’ debts rose four-fold from £2.3bn to £10bn in 2017. At the same time, £2.7bn in dividends were paid out to shareholders. The heavy debts built up during this period have been blamed for Thames’ current financial crisis, which has left it teetering on the brink of possible nationalisation. The company’s debts currently stand at more than £18bn. Macquarie sold its interest in Thames more than seven years ago. The asset manager has in the past said dividend payouts during its ownership were “in line with listed UK water utility companies” and pointed out that Thames maintained “an investment grade credit rating.” The full takeover of National Grid is expected to be completed by the first quarter next year, subject to approval by regulators. National Gas owns and operates Britain’s 7,660 km national gas transmission system. It also owns and maintains more than six million domestic, industrial and commercial gas meters in Britain. The gas network was privatised during the Thatcher administration, initially as part of British Gas. In 2002, it merged with National Grid, which has been selling its stake as it refocuses on electricity. Will Price, head of utilities for Macquarie, said: “This transaction underlines our commitment to National Gas and the critical role – which was emphasised again this month by both the Electricity System Operator and Ofgem – we believe its infrastructure will continue to play as the UK delivers its ambitious energy security and decarbonisation goals.” The purchase comes at an uncertain time for the future of Britain’s gas sector as politicians look for ways to cut carbon emissions. Last year, Sir John Armitt, chairman of the National Infrastructure Commission, urged the Government to stop the supply of natural gas to buildings by 2050 if the UK is to hit its climate targets. In its manifesto, Labour pledged to decarbonise Britain’s electricity system, though it plans to maintain some gas power stations in reserve. Read the latest updates below.

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