 Shareholders in Thames Water have agreed to supply another £750 million of funding as the company struggles under a debt mountain. But the utility giant warned it will need another £2.5 billion by 2030 in 'significantly' greater support for a turnaround in the coming years. The company's annual results revealed Thames Water was £14 billion in debt – up from £12.9 billion the previous year – and was on the brink of collapse. Chief executive Sarah Bentley stepped down just weeks after being forced to give up her bonus over the company's environmental performance. The government has said it has 'prepared for a range of scenarios' in a set of contingency plans to take over if Thames Water goes under. But in a desperate attempt to avoid nationalisation, the supplier says this initial funding agreement until the end of 2025 is a 'major milestone – despite it being less than the £1 billion it expected. Thames Water said any further support past 2025 'will depend on the finalisation of the business plan and the regulatory framework that will apply'. The company's annual results revealed Thames Water was £14 billion in debt and was on the brink of collapse (Picture: Shutterstock) The firm is the UK's biggest water supplier to 15 million people, serving households across London, the Thames Valley and the South East. Interim co-chief executives Cathryn Ross and Alastair Cochran said: 'This announcement is a major milestone for Thames and all our stakeholders. 'The substantial equity support package announced today will underpin the delivery of a more focused turnaround plan that builds on the foundations that have been put in place over the last two years.' Thames Water chairperson Ian Marchant said the new deal is 'the largest equity support package ever seen in the UK water sector'. It follows the £500 million already injected into the sup){kind=link}
NEWS… BUT NOT AS YOU KNOW IT
Shareholders in Thames Water have agreed to supply another £750 million of funding as the company struggles under a debt mountain.
But the utility giant warned it will need another £2.5 billion by 2030 in ‘significantly’ greater support for a turnaround in the coming years.
The company’s annual results revealed Thames Water was £14 billion in debt – up from £12.9 billion the previous year – and was on the brink of collapse.
Chief executive Sarah Bentley stepped down just weeks after being forced to give up her bonus over the company’s environmental performance.