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Tue, 16 Jun 2026

Tue, 16 Jun 2026 Thames Water moves step closer to nationalisation after government objects to rescue deal

A government spokesman tells the BBC that the current offer "does not do enough to protect consumers or the environment".

* UK government objects to proposed rescue deal for Thames Water, a £10bn package put forward by the firm's lenders.
* Deal would write off £9.4bn of Thames Water's debt and inject billions in new money, but would offer leniency on future pollution fines.
* Government concerned that deal does not do enough to protect consumers or the environment.
* Thames Water faces criticism over performance, sewage discharges, and pipe leaks, with a record £122.7m fine issued last year for breaching rules.
* Company at risk of collapse without rescue deal, with cash expected to run out within months.
* Government prefers "a market-based solution", but would step in if necessary, potentially using special administration regime (SAR) for temporary nationalisation.
* SAR would ensure continued service provision and avoid disruption to customers, but Thames Water's lenders warn that it could create problems rather than solve them.