Members of Parliament have urged the UK government to abandon a £10 billion rescue plan for Thames Water, arguing that the proposed deal by a group of over 100 creditors does not serve the public interest, the company, or the environment. The Environment, Food and Rural Affairs (Efra) Committee criticized the plan, which is led by a consortium of UK and US investment firms including Elliott Management and Apollo Global Management. The committee argued that the proposal focuses more on extracting immediate financial value than ensuring the long-term success of Thames Water. Concerns were also raised about the lack of transparency surrounding the creditors involved in the deal. This proposed rescue plan follows the collapse of a previous deal with the US private equity firm KKR in May of last year. At that time, former environment secretary Emma Reynolds voiced concerns that the plan was insufficient in protecting customers and the environment. In response, the Efra Committee recommended legal changes that would allow the government to initiate a special administration of the company based on performance issues, rather than waiting for insolvency. However, such a move could face legal challenges from the creditors involved. Thames Water, the UK’s largest water supplier, is currently in a challenging situation, with MPs describing it as being caught in a "doom loop." In this scenario, fines for poor performance lead to higher customer bills and make it harder to improve the company’s operations. Alistair Carmichael, chairman of the Efra Committee, argued that the government should reject the creditors’ offers in exchange for relief from fines. He also criticized the consortium of 100 hedge funds and other investors, stating that they lack a genuine interest in the public, the company, or the environment. Carmichael suggested that the government could recoup costs in the future if Thames Water is eventually sold once its finances and performance improve. Prime Minister Andy Burnham has previously expressed support for a 10-year plan to renationalize the UK’s water industry, but the government has not yet announced specific plans for Thames Water. Thames Water itself has warned that it only has enough financial resources to last until the end of the year. A representative from London & Valley Water, the consortium leading the rescue plan, stated that the group has never controlled the company and has not received any dividends. They emphasized that their proposal aims to address a significant revenue shortfall to keep Thames Water’s capital investment program on track. A Thames Water spokesperson reiterated the need for recapitalization to ensure financial stability, warning that delays could slow down the company’s turnaround efforts.