The crisis at Thames Water Ltd. has left the $60 billion market for UK water utility bonds deeply divided. A measure of the dispersion in spreads in the sector has surged over the past few weeks as investors try to separate companies they see as well run, with manageable debt loads, from those that face the most operational and balance sheet issues. The standard deviation almost tripled after reports of a possible temporary nationalization of Thames Water, before settling at around double typical levels, according to data compiled by Bloomberg.
Environment targets are job half-done, say charities
New environmental targets set by the government are a "job half-done" and will fail to halt nature's decline, say charities. The Department for Environment, Food and Rural Affairs published the goals on Friday after a six-week delay. The legally-binding targets promise to tackle major problems like the loss of animals and plants, and air pollution. But critics say that crucial targets to protect water quality and natural sites are missing.
Britain begins drought planning after record heatwave
Britain is enacting the early stages of drought plans which involve using water carefully to protect supplies, the government said on Tuesday, following record-breaking temperatures. There are so far no plans for curbs on water use but regulators and water companies are working to manage water levels, including by operating water transfer schemes to allow rivers to be artificially maintained, the Environment Agency (EA) said.