Thames Water is struggling with large debts and could potentially require temporary state ownership.
Thames Water supplies water to about one quarter of Britain’s population and has expressed its need for one billion pounds of fresh equity in order to continue operating. The government has spoken with the regulator and is prepared to take any necessary steps to ensure water keeps flowing. This situation has become a political headache for the conservative government due to public outcry over the release of sewage into rivers and seas, as well as rising bills.
The water sector was privatized in 1989, and the energy supply sector took similar action in 2021 when it rescued an energy supplier after it collapsed. Local politicians claim that consumers will not be impacted by this issue, and if needed, the government would move into the next stage of action.