The government has objected to a proposed £10bn rescue deal from Thames Water’s creditors, a move that could bring the water company a step closer towards public ownership.
In recent years, Thames Water, one of the biggest water and sewerage companies in the UK, has increasingly found itself in hot water – mostly due to the nearly £15bn debt it has racked up.
A 2023 analysis of its accounts showed that the firm had repeatedly made cuts and underinvested in critical water infrastructure in the south-east of England, while at the same time paying out billions to shareholders.
To help claw its way out of its debts, the private firm stated in 2024 that it would require an increase in customer bills of 40% (59% after accounting for inflation).
The industry regulator Ofwat rejected these proposals. It also put Thames Water in a form of special measures, under which it is subject to extra oversight by the regulator. Last year it was issued with a £122.7m fine – the biggest ever issued by Ofwat...