Key facts
- Thames Water needs an additional £2.4bn to avoid running out of cash by late 2026 or early 2027.
- The company has drawn down £2.65bn of a £3bn lifeline provided by creditors in February last year.
- Creditors have proposed writing off £4bn in loans, conditional on Ofwat waiving pollution fines.
- The utility company serves 16 million customers in London and the Thames valley.
- Thames Water's debt pile is approximately £20bn.
Thames Water has requested an additional £2.4bn from its creditors to prevent a cash shortfall by the end of 2026 or early 2027. The company stated it is unlikely to finalize a long-term recapitalization deal before running out of funds. The utility, which serves 16 million customers, is burdened by approximately £20bn in debt. Shareholders have exited, leaving creditors to manage the situation. In February of last year, creditors provided a £3bn lifeline, of which £2.65bn has been drawn down. The current proposals from creditors involve writing off £4bn in loans, but this is contingent on Ofwat agreeing to waive pollution fines for several years, a prospect deemed politically difficult.