Can Thames Water secure the £3 billion it needs to avoid running out of cash by March? This week, Thames Water, the UK’s largest water utility, finds itself at a critical juncture. Facing a £3 billion loan proposal in court and an impending regulatory decision from Ofwat, the company’s financial troubles highlight broader challenges within the water sector.

Tim Whittaker, Research Director at EDHEC Infra & Private Assets, joined BBC Radio 5 Live’s “Wake Up to Money” programme on 17/12/24 to discuss the critical developments in Thames Water’s ongoing financial crisis.

Key points from Tim’s analysis:

• £3 billion loan proposal: Thames Water risks running out of cash by March 2025 without this urgent refinancing.
• Debt restructuring dispute: Existing debt holders face being moved into a junior position if the court approves the proposal, a move some investors are resisting.
• Regulatory decision: Ofwat’s upcoming ruling on bill increases (2025-2030) is pivotal. Water companies argue the proposed 20-30% increase will not cover necessary investments, likely leading to appeals and potential further bill hikes.
• The bigger picture: Tim emphasised the need for systemic reform, stating: “There has to be a massive change in how this is all regulated. This is just not working.”

The outcome will not only shape Thames Water’s future but also set a precedent for the water industry as a whole.

Listen to the segment here (31:20 to 39:20).

Read our research paper, “Low Tide: What the Data Showed About Thames Water”, here.