Tue, 11 Mar 2025

Tue, 11 Mar 2025 Why is Thames Water in so much trouble?

The UK's biggest water firm has just secured a rescue loan, but how did it come to this?

* Despite the loan, Thames still has huge debts (£19bn) and struggles with leaks, sewage spills, and outdated infrastructure.
* The company serves 25% of the UK population, mostly across London and southern England, and employs 8,000 people.
* If the funding deal had not been approved, Thames Water could have faced temporary nationalisation under a Special Administration Regime.
* However, customers would not have noticed any impact on their services as taps would still run and toilets would still flush.
* The company is planning to increase water bills by up to 35% (excluding inflation) over the next five years, but wants to raise them by 53%.
* Consumer groups argue that customers shouldn't pay more because Thames Water has been badly managed.
* The company's chairman says that without bigger price rises, it cannot guarantee safe and resilient water supplies that can cope with climate change and population growth.
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