Thames Water debt pile rises further despite return to profit

Cash-strapped Thames Water has revealed a further emergence successful its indebtedness heap portion signaling a instrumentality to nett connected the backmost of inflation-busting hikes to bills.

The UK's largest supplier said the 31% emergence to lawsuit bills since April had allowed it to summation superior concern by 22% to £1.3bn amid demands it amended show successful preventing sewage spills and stopping leaks.

Thames Water said it recorded a 20% driblet successful contamination incidents implicit the six months to the extremity of September, and leakage show was holding dependable contempt the "extremely adust summer".

Money latest: How overmuch is simply a just edifice tip?

While discarded complaints dipped by 11%, according to the company, determination was a 42% surge successful the fig of customers complaining astir the hike to bills.

Thames gross roseate 42% connected the aforesaid play past twelvemonth to £1.9bn, helping a instrumentality to nett aft taxation of £328m connected the backmost of a £190m nonaccomplishment during April-September 2024.

Thames said profitability was damaged by higher indebtedness serving costs.

Its indebtedness heap was recorded astatine £17.6bn - a emergence of 5%.

The results were released against the backdrop of continuing talks involving the authorities and regulators implicit a projected rescue woody by large Thames Water creditors.

Their consortium is known arsenic London & Valley Water.

It efficaciously already owns Thames Water nether the presumption of a fiscal restructuring agreed aboriginal successful the summertime but Ofwat is yet to springiness its verdict connected whether the consortium tin tally the company, averting the imaginable of it being placed successful a peculiar medication regime.

Without a woody the consortium, which includes concern heavyweights Elliott Management and BlackRock, would beryllium wiped out.

Ofwat, which is to beryllium scrapped nether a shake-up of manufacture oversight, has been starring scrutiny of London & Valley's operational program and projected superior structure.

The prospective woody would constitute disconnected billions of pounds of the company's indebtedness and inject billions successful caller equity, successful instrumentality for an accommodation successful the regulator's attack to aboriginal fiscal penalties.

Thames sees the creditors' connection arsenic the lone viable solution.

Despite immense hikes to household bills - allowed crossed England and Wales to bolster aging infrastructure including tempest overflows - the institution says its fiscal turnaround has been hampered by grounds fines for things similar sewage leaks and bonuses to clasp cardinal staff.

Sky News revealed connected Tuesday that its remuneration committee volition meet adjacent week to determine whether to proceed with astir £2.5m successful retention payments to 21 elder managers.

Thames main enforcement Chris Weston said the institution had made bully advancement connected its operational and translation targets.

"This advancement has each been achieved arsenic we besides negociate the recapitalisation of the business. We proceed to enactment intimately with stakeholders to unafraid a market-led solution that we judge is successful the champion interests of our customers and the environment.

"This successful crook volition let the translation of Thames to continue, a programme that volition instrumentality astatine slightest a decennary to implicit and volition reconstruct the infrastructure and operations of the company."