Thames Water moves step closer to nationalisation after government objects to rescue deal
Summary
The UK government has rejected a rescue plan for Thames Water, the country's largest water company, raising the chance of nationalisation. Thames Water is facing financial trouble and risks running out of money soon if no deal is made.Key Facts
- The government objected to a rescue deal proposed by Thames Water’s lenders.
- Thames Water serves about 16 million customers across London and southern England.
- The company has been under financial stress and environmental criticism, including a record £122.7 million fine for sewage rule breaches.
- Lenders offered to forgive 30% of nearly £20 billion debt and invest new funds but want fewer future pollution fines.
- The government fears the deal would unfairly burden customers and harm the environment.
- Without a deal, Thames Water could collapse within months, risking water and sewer service disruptions.
- The government may use a special administration regime (SAR) to keep Thames Water running temporarily.
- Thames Water’s management warns that SAR could delay improvements and increase costs.
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