Thames Water drafts in advisors to tackle £14bn debt pile
Thames Water has been forced to draft in advisors to evaluate its financial situation, amid growing concerns that the group will not be able to fix its £14bn debt mountain.
According to reports in Sky News, the UK’s biggest water supplier has drafted in investment bankers from Rothschild, and the law firm Slaughter & May to explore “financing options for the company”.
The appointment of the advisors comes as the privately owned company has faced backlash from both the public and political figures regarding its inability to prevent sewage leaks.
Industry sources told Sky that the government and Ofwat, the industry regulator, were “aware of growing concerns about its financial position”.
“It’s normal course of business to appoint advisors to support the funding of our investment programme,” a Thames Water spokesperson told the outlet.
The news is another blow for the company’s reputation, which has been battered over the past few years due to being fined a number of times.
In 2021, it was slapped with a £4m penalty for allowing untreated sewage to escape into a river and park, and later in the same year it was ordered to pay £11m for overcharging customers.
It comes as regulator Ofwat is clamping down on water suppliers in efforts to secure reliable services for the public going forward.
Earlier this month, City A.M revealed that Ofwat could cut the funding and profit allowances for suppliers for the upcoming price review if they do not come up with more ambitious strategies.
Each water company has developed strategies for setting out how they ensure water needs are met through to 2050 and protect the environment, known as draft Water Resource Management Plans (WRMPs).
City A.M has approached Thames Water for a comment.