Tue, 12 Aug 2025

Tue, 12 Aug 2025 Administrators lined up in case of Thames Water collapse

FTI Consulting is working on contingency plans should Thames go bust but how did it end up in this state?

* The UK government has taken a precautionary step by lining up administrators from FTI Consulting, should Thames Water collapse.
* Thames Water is struggling with huge debts and problems with leaks, sewage spills, and outdated infrastructure.
* The company serves a quarter of the UK's population and employs 8,000 people.
* Despite the government saying it remains "financially stable", preparations are being made for administration in case of insolvency or breach of an enforcement order.
* Households will still have access to drinking water and sewerage services if Thames Water goes bust.
* The withdrawal of US private equity giant KKR from plans to buy Thames Water has increased the likelihood of collapse.
* Sources close to the situation say politicisation of the water industry is a major disincentive for investors.
* Thames Water's debt has increased sharply over the years, with its total debt standing at £22.8bn.
* Customers will see no impact on their services if Thames Water collapses, but bills may rise to fix problems.
* Consumer groups argue that people shouldn't have to pay more because the company has been badly run.
* Sir Adrian Montague, Thames Water's chairman, says bigger price rises are needed to ensure safe and resilient water supplies.
* The entire water and waste sector was privatised under Margaret Thatcher's Conservative government in 1989.
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