Category Archives: Thames Water

Thames Water wins court backing for £3bn debt package

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Deal approved at high court gives company £1.5bn in upfront cash to stave off collapse

Thames Water has won court approval for an emergency debt package worth up to £3bn that should stave off the collapse of Britain’s biggest water company for at least another few months.

London’s high court said on Tuesday that the deal could proceed, after hearing four days of complex arguments earlier this month over whether it should go ahead. The deal will allow the company to avoid special administration, in effect a temporary nationalisation.

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Thames Water seeks high court approval for £3bn debt lifeline

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Hearing to rule on whether to grant emergency funds to water utility, which says it may run out of cash by March

Thames Water will seek court approval for up to £3bn in emergency funding, which could stave off temporary nationalisation, at a court hearing in London.

A high court judge will hear from Britain’s biggest water supplier and groups of rival creditors on Monday before deciding whether to approve the rescue. Without the debt lifeline, Thames Water has said it could run out of cash by March.

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Water companies in England ‘use greenwashing playbook to hide environmental harm’

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Researchers say companies have prolonged injustice and exaggerated cost of solving infrastructure problems

Water companies are adopting disinformation tactics similar to those used by the fossil fuel and tobacco industries with the widespread use of greenwashing to downplay the environmental harm they cause, a study says.

Environmental scientists analysed the communications of the nine main water and sewerage companies in England, and compared them with a framework of 28 greenwashing tactics employed, researchers say, by the tobacco, alcohol, fossil fuels and chemical industries.

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UK government contacts potential administrators for Thames Water

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Teneo, Interpath and EY among those reportedly approached for the role if company falls into bankruptcy

The UK government has reportedly approached multiple restructuring advisers for the role of special administrator for Thames Water if the troubled utility falls into bankruptcy.

Teneo, Interpath and EY are among the companies contacted by the government as it prepares contingency plans should Britain’s largest water company be forced into nationalisation, the Financial Times reported, citing people familiar with the process.

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Regulator stops customers from being billed for ‘undeserved’ bonuses

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Ofwat uses new powers to ensure investors pay at Thames, Yorkshire, and Dŵr Cymru Welsh Water

Investors at Thames Water, Yorkshire Water, and Dŵr Cymru Welsh Water will be forced to pick up the tab for executive bonuses after the regulator determined that the sector had awarded “undeserved” extra payments, worth £6.8m.

Ofwat said on Thursday it had used new powers to ensure that shareholders and bondholders at the three companies paid for bonuses because they had not “adequately reflected overall company performance issues”.

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Floods, explosions and asbestos: Thames Water faces potential problems on all fronts

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Exclusive: Senior managers say they are forced to press ahead with orders for vital items without approval

When Sarah Bentley and Sarah Albon met at Beckton sewage treatment works in east London, the choice of location was designed to underline Thames Water’s predicament.

The site is Europe’s largest sewage treatment operation, with Grade II-listed parts of the site dating to the 1860s. It is now connected with the new Thames Tideway super-sewer, but insiders say several parts of the site are simply crumbling. The site is also riddled with asbestos.

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Thames Water supply ‘on knife-edge’ with £23bn repairs needed

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Exclusive: Company has failed to tackle serious safety concerns or upgrade vital IT systems, Guardian investigation reveals

Thames Water has £23bn of assets that are in urgent need of repair and the supply of water to its 16 million customers is “on a knife-edge”, a Guardian investigation can reveal.

Britain’s biggest water company has failed to tackle adequately serious safety concerns, has not upgraded essential IT systems and has tolerated a culture of intimidation among staff, according to insiders and an analysis of documents.

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Water companies raise bonuses to £9.1m despite record sewage discharges

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Third of total comprises bonuses at Severn Trent as indebted Thames nearly doubles payouts to executives

Bonuses for water company bosses in England and Wales rose to £9.1m this year despite record sewage discharges into rivers and seas.

More than a third of that total comprised bonuses at Severn Trent, which was fined £2m this year for “reckless” pollution but lifted its bonuses to £3.36m.

Thames Water almost doubled its payouts to executives, from £746,000 in 2021-22 to £1.3m in 2023-24, despite its CEO quitting halfway through the year.

Data from Companies House, analysed by the Liberal Democrats, show that overall bonuses increased from £9.013m last year to £9.127m this year.

The payouts pile further pressure on the regulator, Ofwat, to intervene in the decisions of water company boards. Last year, raw sewage was discharged for more than 3.6m hours into rivers and seas, a 105% increase on the previous 12 months.

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Unresolved water complaints in England and Wales rise to near-decade high

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Customer disputes over sewage spills, billing mistakes and water meters soar in past year

The number of customer complaints that were unable to be resolved by water companies in England and Wales has risen by almost a third to the highest level in nearly a decade.

There was a 29% increase in 2023-24 in cases escalated to the Consumer Council for Water (CCW) by households that failed to achieve a resolution from their supplier, the watchdog said.

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Labour used water industry analysis to argue against nationalisation

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‘Economically illiterate’ Defra letter sent to anti-sewage groups cites 2018 report commissioned by water companies

Labour used “economically illiterate” analysis paid for by water companies in order to argue against the nationalisation of the sector, the Guardian can reveal.

In an official letter recently sent to anti-sewage groups, civil servants cited a paper by the Social Market Foundation as a reason to avoid nationalisation as part of its review of the sector. The report from 2018 was commissioned by United Utilities, Anglian Water, Severn Trent and South West Water.

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Thames Water credit ratings slashed to lower levels of junk as default fears grow

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S&P and Moody’s cut ratings by five notches on risk troubled company will run out of cash

Thames Water’s debt rating has been slashed to the lower levels of junk by two major credit rating agencies, piling further pressure on the UK’s biggest water company, which is rapidly running through cash and fighting to stave off renationalisation.

S&P Global Ratings and Moody’s said the utility was fast running out of money and on the brink of default. S&P cut its rating on Thames’s £15bn top-ranking debt pile by five notches to CCC+, taking it into the triple-C category that is considered very risky. Thames lost its investment-grade credit rating in July.

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Thames Water lobbied Whitehall to press Ofwat on allowing higher bills

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Exclusive: Debt-ridden company also warned officials of ‘chilling effect’ of any renationalisation

Thames Water has lobbied the government to intervene with the regulator to allow it to charge far higher bills, the Guardian can reveal.

Advisers and board members of the beleaguered water company are understood to have met Whitehall officials in recent weeks to say that allowing it to be temporarily renationalised would have a “chilling effect” on the entire UK’s appeal to international investors, sources familiar with the discussions told the Guardian.

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Thames Water says without steep bill increase it’s ‘neither financeable nor investible’

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Debt-laden company tells Ofwat if it cannot charge customers 59% more, it ‘would prevent company turnaround and recovery’

Thames Water has said it will be unable to recover from its funding crisis if it is blocked from charging customers significantly more, as it proposed to pile an extra £228 a year on to household bills.

The debt-laden company said the increase to bills that has been proposed by the industry regulator, Ofwat, leaves its activities “neither financeable nor investible”.

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Canadian export agency ‘hit by big losses after lending to Thames Water’

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State-backed body EDC has reportedly sold at deep discount two loans made to debt-ridden UK utility

Canada’s state-backed export credit agency is reportedly nursing steep losses after lending debt-ridden Thames Water hundreds of millions of pounds.

The British utility, which has said it could run out of cash by next June, received two loans from Export Development Canada (EDC) in 2018 and 2019 at the behest of the Canadian pension fund Omers.

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UK rivers and beaches have been heaped with pollution for years – when will we talk about restoration?

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The penalties reflect the failings of the Environment Agency and Ofwat as much as the water companies

Behind the record fines announced by Ofwat for the routine dumping of sewage into rivers and seas by three water companies, there is a voiceless victim, one that does not sit in boardrooms, or get a chance to count dividends. It is our rivers and coastal waters, subjected to years of continuous pollution under the noses of the regulators, which are suffering.

In all likelihood the £168m penalties for the already struggling Thames Water, Yorkshire Water and Northumbrian Water will be followed by fines for the remaining eight water and sewerage companies, all of whom Ofwat is investigating over failure to treat sewage according to the law.

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Thames Water owner to liquidate solar energy subsidiary amid debt crisis

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Exclusive: solar developer Trinzic to voluntarily shut down as holding company seeks to recoup more than £25m

A solar energy project developer linked to Thames Water is to be liquidated and its staff made redundant as the crisis engulfing the debt-laden water supplier puts strain on its complex corporate structure.

Trinzic Operations Ltd, which is ultimately owned by Thames’s parent company Kemble Water Holdings, is to be voluntarily shut down, the Guardian can reveal.

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Revealed: the ‘catastrophic scale’ of sewage spills in England and Wales

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Water companies have logged five sewage spills a day, every day, for a decade, analysis by the Observer shows

Water companies in England and Wales have averaged five serious sewage spills into rivers or seas every day over the past decade, the Observer can reveal.

Analysis of Environment Agency data has found that the 10 firms recorded 19,484 category 1-3 pollution incidents between 2013 and 2022, the most recent year recorded, an average of one every four and a half hours.

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Thames Water collapse could trigger Truss-style borrowing crisis, Whitehall officials fear

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Exclusive: Concerns over effect on UK’s finances lead officials to believe utility should be renationalised before general election

Senior Whitehall officials fear Thames Water’s financial collapse could trigger a rise in government borrowing costs not seen since the chaos of the Liz Truss mini-budget, the Guardian can reveal.

Such is their concern about the impact on wider borrowing costs for the UK, even beyond utilities and infrastructure, that they believe Thames should be renationalised before the general election.

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Thames Water could raise bills to £627 a year to help fix leaks

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Embattled water supplier promises to invest up to £3bn more over the next five years

Thames Water could raise bills to as much as £627 a year to pay to fix its leaky network, after promising to invest up to £3bn more over the next five years.

The embattled water supplier said on Monday that it had updated its spending plans for 2025 to 2030 after discussions with the industry regulator, Ofwat.

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Thames Water-linked firm paid £14m in dividends despite concerns over group

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Kennet Properties sells off Thames Water land, whose owner, Kemble Water, has warned it would not be able to pay a £190m loan

A development company that sells off land no longer needed by Thames Water has paid out a £14m dividend despite warnings that it could become engulfed by the embattled water group’s financial woes.

Accounts filed at Companies House show Kennet Properties paid out a £14.5m dividend during the year to 31 March 2023, despite the difficulties faced by the wider group, which is facing a potential administration.

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