Thames Water creditors to vote on emergency £2.4bn loan as cash runs low
Summary
Thames Water’s creditors are set to vote on a £2.4bn emergency loan that would raise the utility’s available funding to £5.4bn and support its operations until autumn 2027. The company says it may run out of cash by the end of 2026 or early 2027, while debate continues over a creditor takeover, government control or special administration.Key Facts
- The creditor consortium London & Valley Water is due to vote on the proposed loan on Thursday.
- Thames Water’s existing £3bn loan carries an interest rate of 9.75%; the company has drawn £2.65bn of it.
- Thames Water said this month that it needed another £2.4bn because it could run out of cash before agreeing on a longer-term debt deal.
- Campaign group We Own It estimated that interest on the new loan could cost £40 per household if added to bills; London & Valley Water said the cost would not be added to bills.
- We Own It estimated that including the full loan amount in bills would equal £454 per household.
- Thames Water has about £20bn in debt and serves 16 million customers in London and the Thames Valley.
- The company’s shareholders withdrew in 2024, leaving creditors with effective control while they seek a deal to avoid bankruptcy.
- Andy Burnham is considering a creditor takeover, nationalisation or another form of state control; some politicians and campaigners have called for special administration.
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