Thames Water Secures £3bn Rescue Loan
Thames Water has secured approval for a £3bn rescue loan, allowing the utility to avoid immediate government control and stave off a looming financial crisis. The Court of Appeal dismissed a legal challenge against the loan, which was essential to prevent the company from running out of money by March 24th. The loan will help the UK’s largest water supplier restructure its £19bn debt, with the first £1.5bn set to be disbursed in the coming months. However, the deal faces opposition from critics who argue that the rescue plan primarily benefits creditors, not the public.
Environmental campaigners, including Liberal Democrat MP Charlie Maynard, had pushed for the company to be renationalised under a special administration regime, expressing concerns over the high interest rates and the company’s financial management. "As a vital public utility serving a quarter of the population, the Environment Secretary should be charting a course to safer waters by putting Thames into special administration and public ownership," said Matthew Topham from We Own It. Opponents argue that this loan deal could cost taxpayers billions in fees, which may ultimately harm consumers.
Despite these objections, Thames Water’s CEO, Chris Weston, expressed confidence in the decision. "We remain focused on putting Thames Water onto a more stable financial foundation as we seek a long-term solution to our financial resilience," he said. The company has already begun assessing proposals from potential investors as it works toward a more sustainable future.
