What is behind Thames Water’s cash crunch and is it heading for nationalisation?

Thames Water has been left racing to secure cash once again after its investors withdrew a £500 million funding lifeline that was due at the end of this month. Britain’s biggest water supplier is blaming regulator Ofwat for making its plan “uninvestible”, but has faced accusations of trying to “blackmail” the regulator into accepting its demands to hike customer bills by 40%. Here we look at what is behind the latest funding crisis at the utility giant and what it means: – Why is Thames Water racing to secure cash, less than a year after agreeing a funding plan with investors? The water utility – which serves 16 million households across London and the South East – revealed that its investors had pulled a £500 million funding lifeline that was due to be paid at the end of this month. The payment was the first part of a £750 million financing plan that was agreed by its investors last July, when the debt-laden firm was first said to have been on the brink of emergency nationalisation. Thames Water blamed Ofwat for the decision by its investors to withhold the funding, claiming that the regulator had made its proposed business plan...

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