Key facts
- Creditors will vote on Thursday on a £2.4 billion emergency loan for Thames Water.
- The loan would increase the total funding facility to £5.4 billion.
- Thames Water needs the cash to avoid running out of money by early 2027.
- Campaigners warn the loan could add £40 per household in interest to bills.
- Creditors insist customer bills will not be used to pay for the rescue financing.
- UK government is considering nationalization or special administration for the utility.
Creditors to Thames Water are set to vote on Thursday on whether to grant an emergency £2.4 billion loan to prevent the company from running out of cash by early 2027. The debt-laden utility company, which serves 16 million customers, has a debt pile of about £20 billion and its shareholders walked away in 2024. The proposed loan would increase a funding facility to £5.4 billion. Campaigners warn that if granted on similar terms to a previous £3 billion loan, the new facility could add £40 per household in interest alone to bills, though the creditors insist customer bills will not be affected. The UK government, led by Andy Burnham, is considering options including a takeover by creditors, nationalization, or special administration.