Thames Water confirms shareholder talks – but plays down fears of collapse
Thames Water confirms it is in talks with shareholders over securing more funding, but has played down fears the UK’s largest supplier could collapse and leave its 15m customers in the lurch.
In a statement to the London Stock Exchange, Thames Water said it received £500m of new funding from shareholders in March earlier this year, but warned it still needs more money to support its turnaround plans for fixing sewage leaks and creaking pipeline infrastructure.
It is reportedly looking for a £1bn injection in funds, according to Sky News, and has called in management consultants Alix Partners to advise on the firm’s turnaround.
This follows the sudden exit of its chief executive Sarah Bentley, with the supplier facing a hefty £14bn debt pile and a five year high in the numbers of sewage spills.
Thames Water revealed industry watchdog Ofwat is being kept fully informed on progress of the company’s turnaround and its engagement with shareholders.
It also argued it has “a strong liquidity position”, including £4.4bn of cash and committed funding as of March 2023.
When approached for comment, an Ofwat spokesperson said: “We monitor the financial position of all the key water and wastewater companies. We have been in ongoing discussions with Thames Water on the need for a robust and credible plan to turn the business around and transform its performance for customers and the environment. We will continue to focus on protecting customers’ interests.”
A government spokesperson added: “We prepare for a range of scenarios across our regulated industries – including water – as any responsible government would. The sector as a whole is financially resilient. Ofwat continues to monitor the financial position of all the key water and wastewater companies.”