Thames Water’s financial crisis has entered a new phase after Parliament’s Environment, Food and Rural Affairs Committee called on the UK Government to reject a rescue proposal from a creditor consortium and consider placing the company into the Special Administration Regime.

Around £20 billion of debt

Thames Water serves around 16 million customers and is the UK’s largest water company, but it is also carrying about £20 billion of debt. Its financial position has become increasingly difficult as it tries to fund investment, meet regulatory requirements and deal with penalties linked to its environmental performance.

The company says it needs to be recapitalised so it can continue investing. Senior creditors have been developing a rescue proposal through the London & Valley Water consortium. The credi ...