Thames Water needs 'substantial' sums of money

The UK's largest h2o institution Thames Water volition request "substantial sums of money" to stabilise its finances, the h2o regulator has said.

Ofwat brag David Black said talks betwixt the steadfast and investors to rise the other backing were continuing.

The h2o firm, which serves a 4th of the UK population, is billions successful indebtedness and is nether unit to hole its finances aft fears it could collapse.

"We request to spot their revised concern program but we deliberation it's important sums of wealth [that are needed]," Mr Black said, portion being quizzed astatine a Lord's concern committee.

Mr Black said problems were astir acute astatine Thames Water, and that helium did not spot the aforesaid level of contented astatine different companies.

The proceeding came hours aft it was announced that Thames Water had been handed a £3.3m fine for discharging millions of litres of undiluted sewage into 2 rivers successful Sussex and Surrey, sidesplitting much than 1,400 food successful 2017.

Thames Water has faced dense disapproval implicit sewage discharges and leaks. The institution leaks much h2o than immoderate different h2o institution successful the UK, losing the equivalent of up to 250 Olympic-sized swimming pools each time from its pipes.

A fewer days later, 1 of the UK's largest backstage pension funds, Universities Superannuation Scheme (USS), became the archetypal large capitalist to publically backmost the firm to crook astir its finances and performance.

But Mr Black said determination whitethorn not beryllium an appetite from existent investors to enactment further wealth into h2o companies.

He said that the manufacture had built up excessively overmuch indebtedness from astir 2006.

"I deliberation we should person stepped successful astatine that constituent to halt companies gearing up," helium said, implying that h2o firms were taking connected excessively overmuch indebtedness comparative to equity, oregon disposable funds.

"We've changed companies' licences, we person got the powers to halt that happening now.

"At the time, we truly didn't person the powerfulness to halt that happening," Mr Black said, adding that present Ofwat was "very overmuch of the view" that companies request to trim their indebtedness to tenable levels.

If the steadfast cannot unafraid investment, it could beryllium placed nether authorities medication until a caller purchaser is found.