• Swindon & Wiltshire News
• Wednesday June 28 2023
• Author Name: Peter Davison

Government prepares for possible collapse of Thames Water

The government has begun drawing up contingency plans for the collapse of Thames Water amid growing doubts about the ability of Britain’s biggest water company to service £14 billion debt burden.

Sky News reported this morning (Wednesday) that government ministers and water industry regulator Ofwat are holding discussions about placing Thames Water into a Special Administration Regime (SAR), which would take the reading-headquartered firm into temporary public ownership.

The last time such an insolvency process was used by the government when the energy supplier Bulb collapsed in 2021.

In a statement issued to the London Stock Exchange at 11.30 this morning (Wednesday) Thames Water said: “As envisaged in June 2022, Thames Water received the expected £500 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.

“Ofwat is being kept fully informed on progress of the company’s turnaround and engagement with shareholders.

“Thames Water remains focused on delivering for its customers, the environment and stakeholders.

“Thames Water continues to maintain a strong liquidity position, including £4.4 billion of cash and committed funding, as at 31 March 2023.”

Yesterday (Tuesday) the company announced the departure, with immediate effect’ of CEO Sarah Bentley.

Thames Water serves 15 million customers in Swindon & Wiltshire, Berkshire, Oxfordshire, Gloucestershire, and in London.