A cross-party group of MPs has called on the government to break off negotiations with US hedge funds controlling Thames Water and instead take direct public control of the company. The Efra committee, chaired by Alistair Carmichael, argues that ministers should consider emergency legislation to stabilise the financially troubled water company, which carries debts of £20bn and serves 16 million customers. The intervention follows growing public frustration with Thames Water's environmental failures, rising bills and deteriorating infrastructure.

The hedge fund consortium, known as London & Valley Water and led by Elliott Investment Management (whose founder Paul Singer is described as the world's "most feared investor"), currently operates the company whilst seeking to renegotiate its liabilities. MPs are concerned that the consortium lacks expertise in running essential public services and is prioritising debt relief, having requested exemption from environmental fines potentially worth up to £1bn rather than improving performance. The committee argues that current law prevents the use of a special administration regime to take temporary public control, proposing that fresh legislation may be necessary to put Thames Water back on a sustainable footing and restore public confidence.