- Thames Water is moving closer to potential nationalisation after Environment Secretary Emma Reynolds raised concerns about a proposed rescue plan.
- The UK's largest water supplier, serving 16 million customers, has been struggling with nearly £20 billion in debt since 2023.
- Creditors offered a deal including £3.35 billion of new equity and up to £6.55 billion of new debt, but Ms Reynolds believes it places an “undue” burden on taxpayers and is not good enough for consumers or the environment.
- If a deal is not agreed with the regulator Ofwat, Thames Water could enter a special administration regime (SAR), leading to temporary nationalisation.
- The government prefers a “market solution” over nationalisation, and this issue arises amidst wider political discussions about renationalising the water industry.
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