THE UK’s biggest water firm has warned it only has enough cash to keep going until May 2025. The boss of Thames Water confirmed things are so critical he has already met with the new Labour Government. 5 Struggling Thames Water needs around £3.
25billion from investors to survive Credit: Reuters 5 Thames Water boss Chris Weston has already met with the new Labour government due to the situation being so critical Credit: Thameswater The firm, which has 16million customers and 4,700 staff, needs to raise around £3.25billion from investors to survive. Its existing shareholders have refused to pump in more cash following a stand-off with regulator Ofwat.
The cash crunch comes as the Government is trying to raise money from global investors for big British infrastructure projects. Thames is awaiting an initial verdict from Ofwat tomorrow on its plans to hike customer bills by 56 per cent over the next five years. In return, it will spend £22billion on fixing leaky pipes and sewage spills.
CEO Chris Weston said tomorrow was “another step in the process and not the end point”. But if Ofwat rejects the plans, it will signal that Thames Water cannot rely on having a bigger income from higher bills. This will make it harder to raise cash from investors who want to make money from steady returns.
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