Thames Water is in urgent financial discussions
Thames Water is in discussions to acquire more finance, and the government has stated that it is prepared to act in the worst-case situation if the corporation fails.
The water company, which supplies a quarter of the UK population, is in debt and under pressure, with its CEO abruptly departing on Tuesday.According to the administration, “a lot of work is going on behind the scenes,” and a mechanism was in place “if necessary.”Whatever happens, water supply will remain unaffected.Even if the company were to fail, the BBC knows that it would not happen soon.
Following a succession of sewage spills and leaks, the UK’s largest water company has been harshly chastised for its performance. Thames Water stated that it isIt claimed it was keeping water regulator Ofwat up to date on developments and that it still has “strong” cash and borrowing reserves available.
The corporation leaks more water than any other in the UK, losing the equivalent of up to 250 Olympic-sized swimming pools every day via its pipes.If the company is unable to acquire more capital, the government may temporarily take over until a new buyer is found under a special administrative regime (SAR). After running into financial problems, energy company Bulb recently took this approach.
When asked about Thames Water in Parliament, environment minister Rebecca Pow stated it was not her business to comment on a company’s financial situation, but that water corporationsSarah Bentley, the CEO of Thames Water, resigned on Tuesday after only two years in the position. It happened just a few weeks after she was advised to forego her bonus due to the company’s management of sewage spills.
Thames Water executives Alastair Cochran and Cathryn Ross stated in a statement to staff seen by the BBC that Ms Bentley’s departure and speculation over the firm’s future were “unfortunate and unsettling for many of us.”The company has not stated why she is leaving. Ms Bentley blamed the firm’s bad performance on sewage management earlier this year on shortcomings at the corporation before her time.
