Labour's Investors Summit: Defending UK Utilities Amid Thames Water Concerns

In the UK, the Labour government is preparing for its first international investment summit, aimed at showcasing investment opportunities under its pro-growth administration. However, global investors, including Abu Dhabi's sovereign wealth fund, have expressed concerns about the regulatory environment, particularly regarding Ofwat, the water regulator. This criticism follows the fund's decision to write off its 9.9% stake in Thames Water, which has been struggling with significant debt and operational issues. Critics argue that investors should have been aware of the risks associated with Thames Water, especially given its troubled history from 2011 to 2017, which included high financial gearing and regulatory disputes. Despite these challenges, other UK water companies like Severn Trent and United Utilities have shown strong shareholder returns, indicating that the sector remains investable. The government is urged to focus on these positive examples and not to cater to investors seeking bailouts for poor investment decisions.