Amid mounting concerns over Thames Water’s staggering £14 billion debt, the UK government is reportedly developing contingency plans for the emergency nationalisation of the water company.
Talks are underway between water regulator Ofwat, the Department for Environment, Food and Rural Affairs (Defra), and the Treasury to explore the possibility of temporarily bringing Thames Water back into public ownership through a special administration regime (SAR).
However, these plans are still in the early stages and may not need to be implemented.
The recent resignation of Thames Water’s CEO, Sarah Bentley, has exacerbated worries about the company’s financial stability. As the largest water supplier in the UK, serving 15 million people, Thames Water is now racing to secure £1 billion from investors to bolster its finances.
Shareholders of Thames Water currently include the Chinese sovereign wealth fund China Investment Corporation, UK private pension fund the Universities Superannuation Scheme, and Abu Dhabi Investment Authority subsidiary Infinity Investments.
In December, Ofwat raised concerns about the financial resilience of Thames Water, as well as Yorkshire Water, SES Water, and Portsmouth Water, urging the industry to address these challenges.
