Suppliers to Thames Water pledge £5 billion under a crisis rescue package | Water industry update

Lenders have announced a £5 billion funding plan to support Thames Water, a utility struggling with significant debt. The plan, aimed at preventing financial collapse and potential government intervention, involves writing off approximately £6.7 billion in debt. This has raised concerns with the water regulator Ofwat, regarding the implications for debt holders and the adequacy of environmental standards. The proposal includes a request for leniency from Ofwat, including potentially lowering environmental standards and avoiding fines for past breaches. This plan will determine long-term control of Thames Water, shifting it towards a group of creditors, and highlights the need for substantial debt forgiveness to ensure the company’s recovery.

Source: https://www.theguardian.com/business/2025/jun/10/thames-water-creditors-offer-up-5bn-as-part-of-emergency-turnaround-plan