Concerns over rescue deal could mean Thames Water is nationalised

• Thames Water is moving closer to potential nationalisation after Environment Secretary Emma Reynolds raised concerns about a proposed rescue plan.
• The UK's largest water supplier, serving 16 million customers, has been struggling with nearly £20 billion in debt since 2023.
• Creditors offered a deal including £3.35 billion of new equity and up to £6.55 billion of new debt, but Ms Reynolds believes it places an “undue” burden on taxpayers and is not good enough for consumers or the environment.
• If a deal is not agreed with the regulator Ofwat, Thames Water could enter a special administration regime (SAR), leading to temporary nationalisation.
• The government prefers a “market solution” over nationalisation, and this issue arises amidst wider political discussions about renationalising the water industry.

IN FULL

Thames Water edges closer to nationalisation amid minister’s concerns over rescue deal