Sarah Bentley, the chief executive of Thames Water, has announced she is quitting her job with immediate effect after three years.
On Wednesday, one day after the announcement, it was reported that contingency plans are being drawn up and fears it cannot survive the pressure of its debt. Sky News says the company has a £14 billion debt pile and that and Ofwat, the industry regulator, is holding discussions about placing Thames Water into administration.
Ms Bentley also leaves following the company becoming embroiled in problems with sewage discharges with and has already announced she would give up her bonus as a result.
Thames Water, the UK’s largest water company with around 15 million customers, has said she will continue in post until a replacement is found.
This is all we know about Tuesday’s shock announcement.
What is the background?
Thames Water has been through a tricky time with raw sewage spills being registered.
The company said in May that "extraordinary energy costs" and "two severe weather events" had affected customer service and environmental performance.
It was with this in mind that Ms Bentley gave up her bonus, as did other senior members of staff. However, she did reportedly double her pay, raking in £1.5 million.
What has been said?
Ms Bentley said: “It has been an honour to take on such a significant challenge and a privilege to serve Thames Water’s dedicated and inspirational colleagues.
“The foundations of the turnaround that we have laid position the company for future success to improve service for customers and environmental performance. I wish everyone involved in the turnaround the very best.”
Chairman of the firm Ian Marchant added: “I want to thank Sarah for everything she has done since joining the company in 2020, building a first-class executive team and leading the first phase of the turnaround of the company.
“On behalf of everyone at Thames, the board wishes her every success for the future.”
The statements did not acknowledge the administration or the environmental situation.
What will happen next?
Chief finance officer Alastair Cochran is set to become interim co-chief executive. He will run the company along with Cathryn Ross, the former Ofwat chief executive who joined Thames Water two years ago.
The BBC reported that the company is turning its attention to its goal of reducing the total duration of discharges across London and Thames Valley by 2030. It is planning to invest £1.6 billion in improving sewage works over the next two years to help it achieve this.
