|
Troubled supplier Thames Water has said it remains locked in talks over its proposed rescue deal with creditors as it revealed soaring revenues and customer complaints due to bill hikes. The debt-laden group Britain’s biggest water supplier with around 16 million customers said discussions were ‘positive’ but ongoing with the UK government and regulators to agree a deal to turn around the firm and repair its stricken finances. Thames Water is currently in talks with a consortium of its main creditors, named London & Valley Water, which has submitted plans to pump investment into the utility and write off debts in return for more lenient performance targets. But Thames Water warned there was still a ‘material uncertainty’ over whether the deal would be secured. It said: ‘Since the proposal was made, positive discussions are ongoing between the consortium, the regulators and government, albeit there remain a number of items to be negotiated and agreed before a recapitalisation can proceed.’ The group is hoping to secure the deal to stave off temporary nationalisation after being left on the brink of collapse by nearly £20 billion of debt. Its creditors which include institutional investors such as Aberdeen, Elliott Management and Silverpoint Capital is seen as the final realistic option on the table to avoid being placed into the government’s special administration regime after a previous rescue deal with New York-based private equity firm KKR collapsed in May. Chris Weston, chief executive of Thames Water, said: ‘We continue to work closely with stakeholders to secure a market-led solution that we believe is in the best interests of our customers and the environment. ‘This in turn will allow the transformation of Thames to continue, a programme that will take at least a decade to complete and will restore the infrastructure and operations of the company.’ Half-year results from the provider revealed underlying earnings surged to £1.2 billion for the six months to September 30, compared with £715.1 million a year ago. Revenue rose by 42% thanks to the bill increases, which it said also helped fund £1.3 billion of capital invested to fix leaks, cut sewage spills and improve water quality. It said it cut pollution spills by a fifth but also revealed customer complaints had soared by three-quarters to 55,158 in the half-year after it hiked bills substantially in April. By Holly Williams, PA Business Editor Press Association: Finance source: PA Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
