Thames Water ousts boss after regulator run-ins and record leaks

THAMES WATER has ousted its chief executive after less than three years in the role after weathering repeated dressings down from the industry regulator.

Britain’s biggest water supplier said Steve Robertson, a former telecoms executive, will step down from the helm with immediate effect while the company hunts for a replacement. In the meantime, the company’s chairman, former Big Six boss Ian Marchant, will take on his responsibilities in an interim executive role.

Mr Robertson’s sudden departure comes in the wake of regular run-ins with the regulator over Thames Water’s customer service, leaky pipes and investor returns.

Earlier this year Ofwat handed the company’s £11.7bn business plan for the early 2020s its lowest rating and demanded “substantial” changes to earn a regulatory greenlight.

It also panned the company’s efforts to keep bills low for its 15 million customers and said its efforts to reduce leaks from its water networks showed “the most significant underperformance” in the water industry.

Mr Robertson joined the troubled water company in September 2016 shortly before the Thames former owners, Australian bank Macquarie, sold its final stake in the company.

He was tasked with shoring up the reputation of the water company, which was heavily criticised for hefty investor payouts, rising bills and sewage spills.

However, the company has struggled to restore its image while calls for the industry to be nationalised have grown within the Labour Party.

Thames reported record leaks in 2018 and was ordered last summer to pay £120m in compensation to customers after “underestimating” the scale of its shortcomings.

Thames’ leaky pipes drained its profits to £67.7m for the six months to Sept 30, from £218.5m in the same period the year before. The company is poised to reveal its full-year results at the end of June.

The Thames board is understood to be looking for a replacement with a track record of delivering strong operational standards, to help tackle the company’s floundering performance issues and high costs.

Mr Robertson said it had “been a privilege” to lead a company which “touches the lives of so many”.