UK's largest water company, Thames Water, is urgently seeking new funding to sustain its operations, following a staggering £15 billion ($19 billion) debt burden.
As reported by VCPost earlier this year, the company's financial plight has faced further pressures due to ongoing disputes with regulator Ofwat over proposed bill increases necessary for infrastructure repairs by 2030.
Providing essential water and sewage services to approximately 16 million customers across London and the Thames Valley region, Thames Water has fiercely resisted government takeover attempts over the past year.
Is Thames Water In Financial Trouble?
Despite efforts to secure shareholder funding amounting to around £1.8 billion ($2.3 billion) until spring next year, financial experts told AP News that these resources are waning. At the same time, the company's debt remains a threat to its stability.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, emphasizes that while Thames Water manages to stay operational, its options for securing additional funding from shareholders are becoming increasingly difficult.
Ofwat's report, set to be released soon, will kick off a six-month negotiation period leading up to a critical decision in December. This decision will likely determine Thames Water's path forward amid its £15 billion ($19 billion) debt.
Thames Water CEO Chris Weston remains optimistic, citing positive market interest based on informal engagements.
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