Philip Crump: Thames Water’s £3 Billion Rescue

The debt restructuring of the UK water supplier provides a cautionary tale to New Zealand

In June 2023, I wrote about Thames Water, the UK’s largest water supplier, which was buckling under £14 billion of debt—a load that had long crippled its ability to upgrade its pipes and serve 15 million customers across London and the South East.

Thomas Cranmer: Thames Water on the brink of collapse sends warning of Three Waters debt risk

The English water utility uses the same highly leveraged financing structure as proposed for Three Waters. Crippled by £14 billion of debt it now faces imminent insolvency or renationalisation.

Yesterday news broke that the UK’s biggest water supplier, Thames Water, is on the brink of financial collapse under the weight of £14 billion of debt. The utility provides water to 15 million people in London and the South East.

The water company has struggled under a mountain of debt for many years which has crippled its ability to upgrade its infrastructure on time and improve water quality. The Daily Mail reported yesterday that Thames Water had spilled sewage 22 times a day last year, leaks 630 million litres of water a day and has paid more than £30 million in fines.