Why is Thames Water in so much trouble?

Published On Jun 29, 2023, 8:22 AM

Thames Water, the largest water provider in the UK, stated that it requires a 59% increase in bills from 2025 to 2030 to manage its financial crisis, largely due to significant debt accumulating over the years, now totaling £15.2 billion. The company faces criticism for high debt levels attributed to past management, which included substantial shareholder dividends. The wider water industry is also under pressure, with many companies facing similar debt challenges. Regulatory concerns have been raised regarding the financial stability of several water companies, many of which are foreign-owned and burdened by debt tied to high inflation rates.