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2w ago

Thames Water Seeks Creditor-Led Rescue After £1.65 Billion Loss and Rising Debts

Securing senior creditors’ backing is now critical to prevent special administration or nationalisation

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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 reported a £1.65 billion pretax loss for the year to March, reversing a £157 million profit and pushing net debt to £16.8 billion.
  • Sewage spills jumped by about a third to 470 incidents, leading the company to set aside over £120 million for Ofwat fines and facing public backlash.
  • KKR’s withdrawal as preferred bidder in June forced Thames Water into multibillion-pound negotiations with senior creditors to recapitalise its balance sheet.
  • CEO Chris Weston warned that restoring financial stability and improving performance will require a regulatory reset and at least ten years to complete.
  • Drought conditions have prompted hosepipe bans across four counties, intensifying pressure on the company’s cash flow and drawing tougher scrutiny from regulators.