Thames Water Seeking Financial Support from Shareholders

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Thames Water Seeking Financial Support from Shareholders

Ofwat has refrained from commenting directly on the reports concerning Thames Water but emphasized the necessity for the company to adhere to its turnaround plan to enhance operational and environmental performance. Despite a previous cash injection of £500m, Thames Water faces ongoing financial challenges, such as insufficient funds to repay a £190m loan due in April.

The government has contemplated intervening in Thames Water’s operations should the company face insolvency, as its failure is deemed an undesirable outcome. The company has been under scrutiny for issues like sewage discharges and water leaks, with its leakage rate surpassing that of other water suppliers in the UK. Thames Water's average annual water and sewerage bill is anticipated to increase by 6% in England and Wales, climbing to £473.

Thames Water’s chair, Sir Adrian Montague, a seasoned business leader, justified the decision to seek additional financial support while advocating for the company to remain privately owned as the optimal solution for addressing its challenges.