By Charlie Conchie
Thames Water is racing to secure an emergency funding injection from shareholders as it scrambles to avert collapse and nationalisation, according to reports.
The utilities giant has been plunged into crisis in recent weeks as concerns grow it will collapse under the weight of a £14bn debt pile.
The embattled utilities firm has now asked its shareholders to sign an equity support letter to commit to funding the firm to help it avert collapse, Sky News reported.
Canadian pension fund Omers and the Universities Superannuation Scheme (USS) are reportedly among the investors to have committed to backing the new funding request.
Thames Water is set to update the market on the capital raise on Monday, Sky News reported. The current size of the fundraise was yet to be revealed but one source told Sky it was unlikely to be greater than £1bn, which shareholders had already committed to providinglast year.
Thames Water was contacted for comment.
The sudden exit of Thames Water boss Sarah Bentley two weeks ago triggered a rapid descent into crisis for the firm, with ministers drawing up contingency plans for a potential collapse. Any nationalisation would likely mirror the government’s rescue of energy supplier Bulb, which collapsed into administration in 2021 and was later bought by Octopus.
Water regulator Ofwat has been accused of being “asleep at the wheel” by MPs over the Thames Water affair.
Conservative MP and chair of the Environment, Food and Rural Affairs Committee Sir Robert Goodwill, said the regulator had questions to answer over whether it had “complacent” in its supervision of the case.
Ofwat will face a grilling from MPs on Wednesday.
