Thames Water's shareholders have agreed to a £750m funding deal to the end of March 2025, less than the £1bn the company expected to ensure it avoids nationalisation.

The supplier said the agreement is a “major milestone”, but the group admitted that “significantly” greater support will be needed in following years for its turnaround to be delivered.

When discussing the possibility of further support from shareholders for the period 2025-2030, Thames Water said it “will depend on the finalisation of the business plan and the regulatory framework that will apply”.

Thames Water is the UK’s biggest water supplier. The company has 15 million customers, serving households across London and the South East.

However, the company’s annual results showed the utilities supplier has accumulated £14bn in debt, an increase from £12.9bn the previous year. This year alone, the company's losses amount to £82.6m.

As a result of the company's financial situation...