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(Alliance News) - Thames Water Utilities Ltd has named a former senior executive at British Gas-owner Centrica PLC as its new boss as the under-fire waterworks battles financial troubles and poor performance.
Chris Weston, who worked at Centrica for 13 years, ending as managing director of its international downstream arm, will become the water and waste firm's chief executive from January 8.
He replaces interim co-chief executives Cathryn Ross and Alastair Cochran, who were parachuted into the role when former boss Sarah Bentley stepped down in June in the middle of a funding crisis that left the debt-laden firm on the brink of emergency nationalisation.
It comes after Thames Water – the UK's biggest water supplier, serving 15 million households – admitted in a session with members of Parliament on Monday that its parent company does not currently have the funds to repay a GBP190 million loan due next spring.
The firm, which has seen its debt mountain swell to GBP14.7 billion, told the Commons Environment Committee hearing it will take longer than its current three-year turnaround plan to complete a critical overhaul.
Weston will be paid GBP850,000 a year, plus pensions and benefits, and will be in line for up to a potential GBP1.3 million in bonuses, part of which is deferred for two years and is linked to goals under its turnaround plan.
Thames Water said: "The performance-related pay plan has been designed to meet Ofwat's requirements on executive-related pay and contains performance measures directly aligned to customer, environment and financial resilience.
"The deferred element is directly linked to delivery of the turnaround plan."
Thames Water Chair Adrian Montague said its incoming new boss has a "proven track record working in regulated environments, turning round business performance and improving customer experience".
"He brings strong operational and strategic expertise as we enter this crucial period of delivering our refocused turnaround plan and providing the service that customers rightly expect of us."
Weston said: "Working with the team, I will be focused on delivering the turnaround that the business has outlined and improving performance over the next few years.
"I recognise that this business is critical to both society and the UK and how important it is that we restore confidence in our operations and financial position."
Following his career at Centrica, Weston was chief executive of power specialist and generator supplier Aggreko PLC for seven years until the end of 2021.
Previous roles also include heading up telecoms firm One.Tel for two years as managing director for UK and Europe, leading its sale to Centrica, as well as a stint at Cable & Wireless.
He served in the Army, in the Royal Artillery, from 1983 to 1989.
Last week, Thames Water reported a 54% drop in pretax profit to GBP246.4 million in the six months to September 30, despite a 12% rise in revenue.
In July, the firm was handed a GBP750 million lifeline which included around GBP500 million from shareholders.
The UK government was said to have be working on contingency plans for possible nationalisation of the firm if it had failed to raise the funds.
At the committee session earlier this week, the group's bosses faced significant scrutiny over the utility company's decision to pay a GBP37.5 million dividend in October despite missing pollution and leakage targets, while debt also grew.
By Holly Williams, PA Business Editor
source: PA
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