𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

The boss of Thames Water has called for urgent clarity from prime minister-in-waiting Andy Burnham over his plans for the sector as he insisted the stricken utility could run out of cash within months unless a funding deal is struck.

Chief executive Chris Weston told the Press Association Thames Water has enough funding until October and is relying on creditors for support as they battle to secure a rescue takeover to stave off temporary nationalisation of the debt-laden supplier.

The firm warned in its annual report over a “material uncertainty” over its ability to secure enough liquidity to carry it through to a successful recapitalisation plan.

Mr Burnham, who is expected to be appointed prime minister as soon as next Monday, has signalled he wants to bring in a 10-year plan to renationalise the water industry, saying reform is needed to put the public interest first, leaving a question mark over plans for Britain’s biggest water supplier.

Creditors have already been sent back to the drawing board after Environment Secretary Emma Reynolds last month warned she did not believe their £10 billion plan for Thames Water goes far enough to protect customers or the environment.

Mr Weston told PA the group is in discussions with creditors about extending funding into 2027 to allow more time for the deal, but said clarity from Government is needed, and “the sooner the better”.

He said: “The big unknown is what the new prime minister wants to do when he comes in.

“We’ve had no conversations with him and it would be better to know what he’s thinking.”

He said while the situation is “not terminal”, he stressed the utility’s funding situation is “not sustainable”.

The group’s full-year results showed its cash outflow stood at £1.1 billion before raising any new debt, with money from customer bills not enough to cover massive investment plan costs – despite hiking bills again in April.

Thames Water said: “Bills alone cannot fund the required investment: Thames Water still needs debt funding, creditor support, and ultimately a recapitalisation.”

The results showed Thames Water – which has around 16 million customers across London and the South East – met just over half (55%) of its regulated targets in the year to March 31, up from 38% in 2024-25.

But customer complaints over billing doubled year on year following the tariff hikes, with overall complaints, including those over its operations, up 77%.

Its annual report showed the group swung to a pre-tax profit of £226.4 million for the year to March 31 in a marked improvement from mammoth losses of £1.65 billion the previous year.

But it showed the supplier’s debts swelled to £19.77 billion, up from £17.73 billion the previous year, as the group said it continued to draw down to fund capital investment.

The annual report also revealed Mr Weston saw his pay package increase to £1.16 million from £1.04 million in 2024-45 after he picked up a £99,000 deferred retention payment.

He said this was awarded before the Water (Special Measures) Act passed in May last year banned performance-related payments for those at the top of the firm.

The report also showed his basis annual salary surged by 14% to £995,000 from April 1.

Meanwhile, it detailed £4.09 million was paid out in bonuses to “key management personnel” over the year to March 31 as part of its so-called management retention plan.

Ms Reynolds said: “It’s outrageous that one of the worst-performing water companies is handing out bonuses and inflation-busting pay rises to its executives.

“It flies in the face of basic fairness, and the British public are right to be furious.

“We’ve banned bonuses for polluting water bosses and will be taking action to prevent bonuses by any other name.”