Ofwat hands EY £15m contract to monitor troubled Thames Water

EY, the big four accountancy firm, has landed a £15m contract to supervise Thames Water, the troubled water utility which stands on the brink of collapse. <p>Sky News has learnt that Ofwat, the water regulator, has picked EY to act as independent monitor of <a href="https://news.sky.com/topic/thames-water-6491/1" target="_self"><strong>Thames Water</strong></a> for a period of up to four years.</p><p>According to a document published on a government procurement website on Wednesday, the contract will be worth £15.6m including VAT.</p><p><strong>Money latest: <a href="https://news.sky.com/story/all-the-budgets-key-personal-finance-announcements-and-what-they-mean-for-you-13040934" target="_self">What the budget means for you</a></strong></p><widget id="2"></widget><p>It is expected to be formally signed next month.</p><p>The cost of EY's work will be borne by Thames Water, and not passed on to customers, according to industry insiders - although the company's parlous finances have already left it on the verge of being taken into public ownership.</p><p>EY will replace LEK Consulting, which was appointed as Thames's independent monitor two years ago as a condition of the company's operating licence breaches.</p><p>The accountancy firm's appointment comes as ministers continue to examine options for the future of the troubled company, which is attempting to agree a rescue deal with a group of major creditors.</p> <widget id="3"></widget><p>Andy Burnham has spoken repeatedly of his desire for greater public control of water companies, a wish he expressed again in the House of Commons on Wednesday.</p><p>Last month, Ofwat - which is expected to be abolished by Mr Burnham's administration - appointed Grant Thornton to oversee South East Water, another of Britain's struggling water utilities.</p> <widget id="4"></widget><p>Angela Eagle, the environment secretary, recently met with bosses at companies including South East Water and Thames Water to discuss their performance.</p><p>Ofwat declined to comment on EY's appointment.</p>