THAMES Water has said it is working with shareholders to secure extra cash after reports the Government could step in to buy it.
The debt-laden company has said it needs further funding on top of half a billion pounds it raised three months ago.
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It comes as the business looks to stop itself from collapsing into administration and as ministers weigh up whether it needs nationalising if it does.
But what happens if the giant, which serves 15million customers in London and the South East, does collapse, what will happen to your bills and who owns it? Here’s everything you need to know.
What is happening with Thames Water?
Thames Water today said it was working with shareholders to secure more money to ensure its survival.
The company said in a statement it was in contact with Ofwat, the regulator, about the “turnaround” of the business.
Meanwhile, Ofwat, the Department for Environment, Food and Rural Affairs (Defra) and the Treasury are understood to be meeting to consider the future of the utility company.
In a possible worse-case scenario they could be forced to place the company under what’s known as a special administration regime (SAR).
An SAR is used in extreme circumstances when a company in a vital sector such as water or energy is too big to fail, to protect customers.
It has been used just once, when Bulb Energy collapsed in November 2021, impacting 1.7million customers.
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At the time the provider was the seventh largest energy firm in the UK.
What will happen to bills if it goes into administration?
The Government has insisted work is going on “behind the scenes” to ensure Thames Water customers “will not be impacted” if the company does fall into administration.
Environment minister Rebecca Pow addressed the House of Commons earlier today in a bid to reassure customers their water supplies will be protected.
She said: “Overall the water companies are considered resilient, but there is a lot of work going on behind the scenes with Thames Water to ensure that customers will not be impacted.
“And there is a process in place if necessary to move us to the next stage.”
She added: “Customers should rest assured that their supplies will be protected, both water and waste water.”
Who owns Thames Water?
Thames Water is currently privately owned by a consortium of pension funds and sovereign wealth funds.
A sovereign wealth fund is a state-owned investment fund made up of money generated by Government.
However, if the water company does indeed collapse, the Government may be forced to step in and nationalise it.
This would mean the company is wholly owned by the Government instead of founders, managers or investors.
Generally, the idea with nationalising a company is that all profits made go back into the company rather than being distributed between shareholders.
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