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Without an emergency funding of £3 billion, Thames Water is at risk of running out of cash by March.


Thames Water, the largest water supplier in Britain, is facing a financial crisis as it could run out of cash by March next year if it fails to secure court approval for a £3bn lifeline. The company’s environmental performance has worsened, with a 40% increase in pollution incidents reported in the past six months. This has led to public outcry over sewage spills into waterways.

Thames Water’s CEO, Chris Weston, justified staff bonuses despite criticism from regulators, citing the need to attract talent in a competitive market. The company is seeking approval for emergency funding from creditors to avoid temporary nationalization.

The company’s net debts have increased, and it needs billions to maintain critical water and waste treatment services for its 16 million customers in London and the Thames Valley. Thames plans to raise £3.25bn in new equity to fund investments up to 2030.

The financial update has sparked outrage from environmental groups and politicians, calling for reform in the water sector. Investors have shown interest in taking a stake in the business to secure its finances in the long term.

Thames Water’s efforts to stabilize its financial position are showing progress, with agreements on liquidity extension and equity raise processes. The company’s underlying profits have increased, but it is facing challenges in securing funding and approval for future investments. Ofwat will announce how much water companies can charge customers in the coming years, with Thames seeking a significant increase in bills.

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Photo credit www.theguardian.com

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