Thames Water says it has sufficient money till Might subsequent 12 months

Debt-laden Thames Water has mentioned it has sufficient money to fund its operations till Might subsequent 12 months however that efforts to lift new cash are persevering with.

The UK’s largest water firm reported a rise in annual income for the 12 months to March however its money owed additionally climbed to £15.2bn.

Thames Water, which has confronted fierce criticism over the variety of sewage discharges and leaks, is dealing with questions over whether or not it could actually survive.

Later this week, the water regulator Ofwat is because of publish its draft ruling on how a lot water corporations can cost their prospects for the subsequent 5 years.

There was hypothesis Thames Water might need to be taken over by the federal government if it runs out of cash.

The corporate says it has funding of £1.8bn, which is sufficient to fund its operations till Might subsequent 12 months.

Thames reported a rise in annual income to £157.3m, however boss Chris Weston mentioned the corporate was dealing with a “troublesome time” with strengthening its monetary place “a crucial precedence”.

Thames desires Ofwat to let it elevate shopper payments by as much as 44% between 2025 and 2030, with more money promised for funding in environmental measures.

On Thursday, the regulator will launch its preliminary ruling on how a lot water corporations can elevate payments. There’ll then be a number of months of negotiations earlier than a ultimate ruling in December.

Thames mentioned it might be speaking to potential traders and lenders following Ofwat’s draft ruling, nevertheless it added this was not anticipated to be concluded till after the regulator’s ultimate choice.

An earlier plan put ahead by the corporate was rejected by the regulator, which led to questions over the agency’s future as shareholders at Thames’ dad or mum agency, Kemble Water, withdrew a proposed money injection into the water firm.

In March this 12 months, Mr Weston mentioned it was “finally attainable” that the corporate could possibly be nationalised, though he mentioned that was “fairly a great distance off”.

If Thames does come underneath authorities management, there may be hypothesis it might be put right into a Particular Administration Regime, which might see monetary consultants run the corporate on the federal government’s behalf.

A precedent for this was set in 2021 when vitality firm Bulb went bust and was positioned underneath particular administration.

No matter what occurs to Thames, water suppliers to its prospects will proceed as regular.

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