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7h ago

Thames Water Faces Uncertain Rescue Talks After £1.65bn Loss

The chief executive warns it will take at least ten years to reset the business under the current regulatory framework.

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Thames Water admitted that its sewage pollution incidents increased last year by a third, to 470
Ashley Book, Head of Waste Operations at Mogden Catchment, looks at settlement tanks used to process sewage water from over two million people, at Mogden Sewage Treatment Works, operated by Thames Water, in west London, Britain, June 4, 2025. REUTERS/Toby Melville

Overview

  • Thames Water recorded a £1.65 billion pretax loss for the year to March and saw its net debt rise from £15.3 billion to £16.8 billion.
  • The company is negotiating a senior creditors’ recapitalisation plan but says there is material uncertainty that could force it into special administration.
  • Regulator Ofwat imposed a £122 million fine for poor wastewater performance and Thames Water is appealing its 2025–30 price control settlement to seek a regulatory reset.
  • Sewage spills rose by one-third in 2024–25, prompting a hosepipe ban in Gloucestershire, Oxfordshire, Berkshire and Wiltshire amid drought measures.
  • The company says its cash reserves can cover the next 12 months but warns that failing to finalise a rescue deal would likely lead to special administration and government takeover.