This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-66039170
The article has changed 17 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Government 'prepared for range of scenarios' amid Thames Water collapse fears | |
| (32 minutes later) | |
| The government has said it is prepared for a "range of scenarios" following reports that Thames Water could be on the brink of collapse. | The government has said it is prepared for a "range of scenarios" following reports that Thames Water could be on the brink of collapse. |
| Ministers declined to comment on the company's situation, but said regulator Ofwat monitored "the financial position" of all water firms. | Ministers declined to comment on the company's situation, but said regulator Ofwat monitored "the financial position" of all water firms. |
| Thames Water has been under pressure over its performance and is reportedly struggling under a £14bn debt pile. | Thames Water has been under pressure over its performance and is reportedly struggling under a £14bn debt pile. |
| The business is yet to comment on the speculation over its future. | The business is yet to comment on the speculation over its future. |
| Whatever happens to Thames Water, which is the UK's biggest water firm, providing water for 15 million people in London and the South East, its water supplies will continue uninterrupted. | |
| According to Sky News and the Financial Times, the company is in talks with ministers and Ofwat about contingency plans for the business. | |
| One option would be placing Thames Water in a special administration regime (SAR), which would see it temporarily taken over by the government. | One option would be placing Thames Water in a special administration regime (SAR), which would see it temporarily taken over by the government. |
| This route was most recently taken with energy supplier Bulb after it ran into financial difficulties. | This route was most recently taken with energy supplier Bulb after it ran into financial difficulties. |
| When asked about the reports, the Department for Environment, Food and Rural Affairs (Defra) said it was "a matter for the company and its shareholders". | |
| It added: "We prepare for a range of scenarios across our regulated industries - including water - as any responsible government would. | |
| "The sector as a whole is financially resilient. Ofwat continues to monitor the financial position of all the key water and wastewater companies." | "The sector as a whole is financially resilient. Ofwat continues to monitor the financial position of all the key water and wastewater companies." |
| On Tuesday, Thames Water's chief executive Sarah Bentley quit the business after just two years in the job. It came weeks after she was asked to forgo her bonus over the company's handling of sewage spills. | |
| The firm has not given a reason for her departure, but it comes amid questions over the company's financial stability. | The firm has not given a reason for her departure, but it comes amid questions over the company's financial stability. |
| It has been under pressure to improve its performance amid criticism of its handling of sewage contamination and leaks. | |
| The firm leaks more water than any other water company in UK, losing the equivalent of to 25 Olympic size swimming pools every day from its pipes. | |
| Last year Thames Water's owners - a consortium of institutional investors - pumped £500m into the business and pledged a further £1bn to help it turn things around. | |
| However, reports suggest the firm has been racing to raise £1bn to shore up its finances. | |
| Water bills have been on the rise, with the annual bill for an average household in England and Wales hitting £448 in April. | |
| Bills are set to rise again in 2025 by about £42 per household on average over a "long time frame", former Environment Secretary George Eustice said on Wednesday. | |
| It came after the Times reported bills could rise by as much as 40%, a figure Mr Euctice dismissed. | |
| "[I think that's] something that the industry has put out and it is probably because they are about to commence their negotiations with Ofwat and I think that the figure will be far lower than that when it comes to it," he told the BBC's Today programme. | |
| Related Topics | Related Topics |
| Companies | Companies |
| Sewage | Sewage |
| Thames Water | Thames Water |