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.
Sky News has learnt that Ofwat, the water regulator, has picked EY to act as independent monitor of Thames Water for a period of up to four years.
According to a document published on a government procurement website on Wednesday, the contract will be worth £15.6m including VAT.
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It is expected to be formally signed next month.
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.
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.
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.
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.
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.
Angela Eagle, the environment secretary, recently met with bosses at companies including South East Water and Thames Water to discuss their performance.
Ofwat declined to comment on EY's appointment.
(c) Sky News 2026: Ofwat hands EY £15m contract to monitor troubled Thames Water
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