Key facts
- Thames Water creditors offered a £75 million boost to social tariffs, Sky News reported, to secure Prime Minister Andy Burnham's approval of their rescue plan.
- The revised creditor plan features a debt writedown of about 35%, up from 30% previously, according to infrainsiders.
- Creditors proposed injecting £3.5 billion in equity alongside £6.55 billion in restructured debt, infrainsiders reported.
- The consortium offered a one-off £1 billion payment in exchange for regulator Ofwat waiving penalties until 2030, per infrainsiders.
- Lenders agreed to expand a £3 billion emergency loan facility by £2.4 billion at a 9.75% interest rate, subject to High Court approval, infrainsiders said.
- Thames Water serves 16 million customers across London and the Thames Valley, The Guardian reported.
Thames Water's creditors have offered a £75 million boost to social tariffs as part of a revised rescue plan, Sky News reported on November 14, 2026, in a bid to win approval from Prime Minister Andy Burnham. The offer comes as the utility, which serves 16 million customers across London and the Thames Valley, seeks to restructure £20 billion of debt.
The creditor group, known as London & Valley Water and led by US hedge funds including Elliott Management and Silver Point Capital, has proposed a debt writedown of about 35%, up from 30% previously, according to infrainsiders. The plan includes £3.5 billion in new equity and £6.55 billion in restructured debt. Creditors also offered a one-off £1 billion payment in exchange for regulator Ofwat waiving specific penalties until 2030, infrainsiders reported.
Thames Water asked creditors on November 9, 2026 for more time to repay part of its debt, proposing to extend the deadline from 2027 to March 2028, The Guardian reported. The company said it had started raising the first £600 million of a £2.4 billion emergency loan. Lenders agreed to expand an existing £3 billion facility by £2.4 billion at a 9.75% interest rate, subject to High Court approval, according to infrainsiders.
Burnham faces a decision on whether to allow the creditor takeover, which would involve writing off fines and reducing environmental commitments, or to nationalise the company or approve another form of state control, The Guardian reported. Labour politicians and environmental campaigners have called for special administration. Environment Secretary Angela Eagle plans legislative amendments to lift historic government equity caps and lower thresholds for special administration regimes, infrainsiders reported. Ofwat is minded to launch a public consultation on the revised terms.