Thames Water's creditors are being far too greedy - but you can't blame them for trying

If you would kindly rip up the regulatory system, move the goalposts on sewage and spills and promise not to fine us too much, we'd be delighted to rescue Thames Water.

- Nils Pratley

If you would kindly rip up the regulatory system, move the goalposts on sewage and spills and promise not to fine us too much, we'd be delighted to rescue Thames Water. If these requests cause you political difficulty, dear secretary of state, consider how much worse it could be if you end up controlling this failing company yourself. Do you really wish to be responsible for every burst water main in London and every drop of effluent in Didcot?

That seems to be the pitch from the 100-plus group of lenders to Thames Water who are now the only game in town in terms of a "market-led" recapitalisation, the alternative to special administration, AKA temporary nationalisation.

It is expressed in the bland language of "regulatory support", but the meaning isn't hard to translate. A "rebased" performance target is a lower one. A "pragmatic approach to historic and future legal and regulatory compliance" means letting Thames off substantial financial penalties - maybe a billion or two over the next five to 10 years - that would otherwise come its way.