LONDON, July 15 (Reuters) – Britain’s Thames Water said it had sufficient funding to survive until the last quarter of 2026, and it continued to work with creditors, regulators and the government on a recapitalisation plan, the only option for it to avoid nationalisation.
The company, which serves 16 million customers, has become a symbol of failure in Britain’s privatised water sector, blamed for polluting rivers with sewage due to ageing infrastructure, and struggling with a £20 billion debt pile.
Andy Burnham, who will become Britain’s new Prime Minister within days, has said he believes public ownership is the best option for Thames Water, raising the likelihood of nationalisation for the utility.
The government was already looking at taking Thames Water into its Special Administration Regime, a form of temporary public ownership.
Publishing results on Wednesday, Thames Water said its performance was improving. Sewage pollution fell 18% in the 12 months to the end of March, and its underlying profit after tax came in at £204 million, up from £13 million last year.
“While operationally the business is improving, we are also working with our creditors, regulators and government to complete our recapitalisation,” CEO Chris Weston said in a statement.
(Reporting by Sarah Young; Editing by Muvija M)