Thames Water says it has sufficient money till May subsequent 12 months | EUROtoday

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Debt-laden Thames Water has stated it has sufficient money to fund its operations till May subsequent 12 months however that efforts to lift new cash are persevering with.

The UK’s largest water firm reported a rise in annual income for the 12 months to March however its money owed additionally climbed to £15.2bn.

Thames Water, which has confronted fierce criticism over the variety of sewage discharges and leaks, is dealing with questions over whether or not it will probably survive.

Later this week, the water regulator Ofwat is because of publish its draft ruling on how a lot water corporations can cost their prospects for the following 5 years.

There has been hypothesis Thames Water may need to be taken over by the federal government if it runs out of cash.

The firm says it has funding of £1.8bn, which is sufficient to fund its operations till May subsequent 12 months.

Thames reported a rise in annual income to £157.3m, however boss Chris Weston stated the corporate was dealing with a “difficult time” with strengthening its monetary place “a critical priority”.

Thames needs Ofwat to let it increase client payments by as much as 44% between 2025 and 2030, with extra cash promised for funding in environmental measures.

On Thursday, the regulator will launch its preliminary ruling on how a lot water corporations can increase payments. There will then be a number of months of negotiations earlier than a closing ruling in December.

Thames stated it might be speaking to potential traders and lenders following Ofwat’s draft ruling, however it added this was not anticipated to be concluded till after the regulator’s closing determination.

An earlier plan put ahead by the corporate was rejected by the regulator, which led to questions over the agency’s future as shareholders at Thames’ guardian agency, Kemble Water, withdrew a proposed money injection into the water firm.

In March this 12 months, Mr Weston stated it was “eventually possible” that the corporate could possibly be nationalised, though he stated that was “quite a long way off”.

If Thames does come below authorities management, there’s hypothesis it might be put right into a Special Administration Regime, which might see monetary consultants run the corporate on the federal government’s behalf.

A precedent for this was set in 2021 when vitality firm Bulb went bust and was positioned below particular administration.

Regardless of what occurs to Thames, water suppliers to its prospects will proceed as regular.

https://www.bbc.com/news/articles/c51ypwj0214o