Thames Water creditors are willing to discuss greater public control of the utility as incoming Prime Minister Andy Burnham considers temporary nationalisation to address its £20 billion debt burden.
Turnaround specialist Mike McTighe, representing the largest group of creditors, confirmed investors are prepared to collaborate with new ministers to "rebuild confidence" in the struggling firm. He stated: "We are keen to meet new ministers as soon as possible to discuss how we can work together in the best interests of customers, including by enhancing public control of the company’s operations."
Rescue plans and government engagement
Creditors have pledged to recapitalise Thames Water and restore its investment-grade status, but insist urgent government engagement is required. A previous £10 billion rescue deal collapsed after Environment Secretary Emma Reynolds deemed it insufficient to protect customers and the environment.
Thames Water’s annual report warned of a "material uncertainty" over its ability to secure liquidity for a successful turnaround. The company has cautioned that a special administration regime (SAR) could cost taxpayers £2 billion by the end of next year, according to the Sunday Times.
Next steps for Thames Water
Creditors may offer further concessions to avoid taxpayer-funded intervention, with McTighe emphasising the need for time to "fix a complex business" and rebuild public trust. The firm’s governance overhaul remains a priority as discussions with the new government continue.
