Thames Water falls short of £1bn fundraising target amid nationalisation threat

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Shareholders agree to inject funds but water supplier still needs £2.5bn by 2030.

Article originally published by The Telegraph. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

Published by

11 Jul 2023

Thames Water has been handed a £750m lifeline in its battle to avoid nationalisation but has fallen short of its £1bn fundraising target.

Shareholders have agreed to inject more cash into the ailing utility company as it battles to shore up its finances.

However, the sum raised is less than Thames Water were targeting and bosses admitted it will need £2.5bn by 2030 to fund its turnaround plan.

The new commitment from investors also comes with strings attached, which are likely to include higher bills for customers and higher performance demands.

The £750m will help to ease immediate pressure on Thames Water’s finances, which were put under scrutiny last month after chief executive Sarah Bentley left her role with immediate effect and it emerged the utilities company was struggling to service its £14bn debt pile.

Ministers have drawn up emergency nationalisation plans for the struggling business as a last resort but interim-chief executive Cathryn Ross