Tideway’s relationship with Thames Water
CLARIFICATION ON TIDEWAY'S RELATIONSHIP WITH THAMES WATER
29 June 2023
International Public Partnerships Limited, the listed infrastructure investment company ('INPP' or 'the Company'), notes recent news flow about the financial position of Thames Water[1].
In order to provide clarity to INPP's investors in respect of INPP's investment into Tideway, the 25km Super Sewer being built under the River Thames in London, the Company notes that Tideway is a completely separate company to Thames Water.
Whilst Thames Water does possess a licence requirement to collect Tideway's revenues from its customers and pass those amounts to Tideway, statutory and regulatory protections are provided in the event that Thames Water encounters difficulties, including:
· The water industry's special administration regime ("SAR"): The SAR would apply to Thames Water in the event that Thames Water encounters financial difficulties or is unable to fulfil its legal obligations. The purpose of the SAR would be to transfer Thames Water's business as a going concern and to carry out the functions of Thames Water in the interim. The SAR is designed to ensure customers are protected in the event that a water company fails and should also mitigate the risk of disruption to the collection of Tideway's revenues. The Company notes that this is a tried and tested regime in other regulatory sectors.
· Revenue recovery: Tideway is entitled to recover any revenue shortfall in subsequent periods.
· Direct charging: Whilst considered unlikely to be utilised, Tideway does benefit from a mechanism through which Tideway could, if required, charge certain customers directly for Tideway usage.
ENDS.
For further information:
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Erica Sibree Amber Fund Management Limited
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+44 (0) 7557 676 499 |
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Hugh Jonathan Numis Securities |
+44 (0)20 7260 1263 |
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Ed Berry/Mitch Barltrop FTI Consulting |
+44 (0) 7703 330 199 / (0) 7807 296 032 |
About International Public Partnerships:
INPP is a listed infrastructure investment company that invests in global public infrastructure projects and businesses, which meets societal and environmental needs, both now, and into the future.
INPP is a responsible, long-term investor in over 140 infrastructure projects and businesses. The portfolio consists of utility and transmission, transport, education, health, justice and digital infrastructure projects and businesses, in the UK, Europe, Australia, New Zealand and North America. INPP seeks to provide its shareholders with both a long-term yield and capital growth.
Amber Infrastructure Group ('Amber') is the Investment Adviser to INPP and consists of approximately 180 staff who are responsible for the management of, advice on and origination of infrastructure investments.
[1] The Company provides no comment on the financial standing of Thames Water, only on its interface with Thames Water through INPP's investment in Tideway.
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