Government 'prepared for range of scenarios' amid Thames Water fears

The authorities has said it is prepared for a "range of scenarios" pursuing reports that Thames Water could beryllium connected the brink of collapse.

Ministers declined to remark connected the company's situation, but said regulator Ofwat monitored "the fiscal position" of each h2o firms.

Thames Water has been nether unit implicit its show and is reportedly struggling nether a £14bn indebtedness pile.

The concern is yet to remark connected the speculation implicit its future.

According to Sky News and the Financial Times, the UK's biggest h2o steadfast is successful talks with ministers and Ofwat astir contingency plans for the business.

One enactment would beryllium placing Thames Water successful a peculiar medication authorities (SAR), which would spot it temporarily taken implicit by the government.

This way was astir precocious taken with vigor supplier Bulb aft it ran into fiscal difficulties.

When asked astir the reports, a spokesperson for the Department for Environment, Food and Rural Affairs (Defra) said it was "a substance for the institution and its shareholders".

They added: "We hole for a scope of scenarios crossed our regulated industries - including h2o - arsenic immoderate liable authorities would.

"The assemblage arsenic a full is financially resilient. Ofwat continues to show the fiscal presumption of each the cardinal h2o and wastewater companies."

On Tuesday, Thames Water's chief enforcement Sarah Bentley discontinue the business aft conscionable 2 years successful the job. It came weeks aft she was asked to forgo her bonus implicit sewage spills astatine the company.

The steadfast has not fixed a crushed for her departure, but it comes amid questions implicit the company's fiscal stability.