Thames Water seeks additional £2.4bn to stave off cash shortfall by early 2027

Thames Water told the market it requires an extra £2.4bn to extend liquidity into autumn 2027 and keep its capital programme on track. The water firm, the UK’s largest, is burdened with about £20bn of debt after its shareholders walked away, putting creditors in effective control. Creditors had earlier supplied a £3bn bridge loan, of which £2.65bn has been used, leaving the company perilously close to insolvency.

A proposed rescue plan would see creditors write off £4bn of loans, but it depends on Ofwat waiving pollution fines, a condition the Labour government finds politically difficult. Some Labour politicians and environmental groups have urged Prime Minister Keir Starmer and Mayor Andy Burnham to place Thames Water under special administration, while Burnham has advocated greater public ownership. Creditors are slated to vote on the proposals later this month.