Burak Bir
30 June 2023•Update: 30 June 2023
LONDON
Thames Water, Britain’s largest water company, is in talks with the government for extra funding as it struggles to pay its debts, reports said Thursday.
The company, which serves 15 million customers across London and the Thames Valley, said it is working with shareholders to secure the funding as the government said it is ready to act in "a worst-case scenario" if Thames Water collapses.
"Thames Water received the expected £500 million ($630 million) of new funding from its shareholders in March 2023 and is continuing to work constructively with its shareholders in relation to the further equity funding expected to be required to support Thames Water's turnaround and investment plans," the company said in a statement on Wednesday.
Previously, Business Secretary Kemi Badenoch said she was "very concerned" over the situation, noting there is a need "to make sure Thames Water as an entity survives."
Asked about Thames Water in parliament on Wednesday, Environment Minister Rebecca Pow said that water firms were "considered resilient."
Also speaking on the issue, Green Party MP Caroline Lucas said that "privatization of water was a serious mistake and it needs to be permanently rectified."
Thames Water, along with all other water companies in England, was privatized in 1989.
Meanwhile, Thames Water’s boss Sarah Bentley resigned Tuesday with immediate effect a few days after it emerged that the leakage rate from the company’s pipes was at a five-year high.
Sky News reported that "the government is discussing placing Thames Water into a special administration regime (SAR) that would effectively take the company into temporary public ownership if it collapses."
Thames Water has been met with fierce criticism over its performance after a series of sewage discharges and leaks.
