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Thames Water Secures £3 Billion Creditor Loan to Avert Insolvency Until 2026; Bills May Rise 59%

Oct 25, 2024, 08:57 AM

Thames Water, the UK's largest water utility, has secured a £3 billion emergency funding package from its creditors to avert insolvency and continue operations until at least October 2026. The company, which faced running out of cash by December, has been grappling with a significant debt burden, with 28% of customer bills currently allocated to interest payments on existing debts. Previously, Thames Water proposed increasing annual bills by 23% between 2025 and 2030, but it now indicates that bills may need to rise by up to 59% to stabilize its finances. The new funding arrangement aims to bolster the troubled utility's financial position and prevent it from entering special administration or facing nationalization. This development has raised concerns about the impact on consumers, who may face substantial hikes in their water bills as the company works to restructure its debts and continue operations.