Apr 5, 2024
Thames Water troubles swell as parent firm defaults
Thames Water has seen its troubles deepen after its parent company defaulted on part of its huge debt pile. Being in default renders Kemble Water effectively insolvent but that will not affect the underlying utility business that supplies water and waste services to 1 in 4 people in the UK.The company has been engulfed by a crisis which has seen shareholders refuse to pay a £500m lifeline injection that would have shored up its finances, as well as fierce criticism over Thames Waters' handling of leaks and sewage treatment. The new boss of Thames Water - and the regulator Ofwat - insist that the company has enough cash and overdraft facilities to see it through to May of next year. At some point Thames Water will need to raise new money. Thames Water boss says bills need to rise by 40%. The regulator, whose approval is needed for any price rises, has pushed back on substantial bill increases.
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