Thames Water Boss Resigns

#rdgnews - Less than a week after announcing that it would challenge a regulatory pricing decision Thames Water has parted ways with Chief Executive David Owens.

In a press release the company paid tribute to Mr Owens, who stepped in after a highly leveraged takeover by Australian banking group Macquarie in 2006, but admitted the decision was related to Ofwat's 'final determination' to insist that prices are kept relatively stable in the next 5 year period.

William McNamara in the FT examines the detail of the business pressures which went into the decision. He explains that large debts accumulated in recent years have been making shareholders restless about seeing adequate returns while customers have had growing concerns about maintaining service levels.

Consequently Thames Water sought to maximise income in various ways, such as by developing it's property portfolio, including contentious sites like the Bath Road reservoir in Reading.

So in the squeeze between the two something had to give.

Thames Waters has appointed Martin Baggs as interim CEO while it searches for a permanent replacement.

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Update: Reading Post catches up.

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Background: Water, Water Everywhere

Interview with Thames Water CEO David Owens - RRL #31.