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Thames Water has warned that it could run out of money by the end of the year as it works to avoid collapse through a takeover by its major lenders.
The company said it currently has £1.1 billion available to keep operating, but lenders are delaying additional funding until the planned transfer of ownership is completed. Under the proposal, the creditors would take control of the business through a new company called London and Valley Water.
The warning came as Thames Water published its annual results, revealing it achieved only 55% of its regulatory performance targets. The company also reported a 101% increase in customer complaints about billing, largely linked to significant bill increases approved by the regulator to help fund long-overdue upgrades to water infrastructure, including pipes and storm drains.
Britain's largest water supplier also disclosed that its debt had risen to £18.5 billion in the year ending 31 March, highlighting the scale of its financial difficulties. Thames Water has previously received record fines over poor performance and environmental failures.
The update followed reports that the company's creditors had agreed to provide more funding while awaiting a decision on a proposed £10 billion rescue deal, which would place the utility under new ownership.
