UK’s largest water and wastewater utility company, Thames Water — which serves about 15.5 million people in Greater London and surrounding areas — is facing the most severe financial challenge in its history.
This development threatens the company’s ability to supply 2.5 billion litres of drinking water and treat 4.6 billion litres of wastewater daily.
The company has encountered a major setback in its equity fundraising efforts, notably after US private equity firm KKR withdrew from a multi-billion-pound rescue deal. This has raised serious concerns about Thames Water’s financial stability and heightened speculation about the potential need for government intervention.
The failure to raise sufficient capital could lead to the temporary nationalisation of the utility. The UK government has confirmed it is on standby in case Thames Water is unable to recapitalise and requires state support to keep essential services running.
“The government is clearly keeping a very close eye on what’s going on,” Environment Minister Steve Reed told LBC Radio on Tuesday, following the announcement of KKR’s withdrawal.
Thames Water CEO Chris Weston warned in mid-May that to attract new equity investment and avoid a government bailout, the company would require relief from regulatory fines estimated to total £900 million over the next five years.
