Thames Water demands another £2.4bn from creditors to avoid running out of cash by early 2027

Thames Water has warned it will collapse by the end of 2026 or the start of 2027 unless creditors hand over another £2.4bn in emergency funding, after the company burned through most of a £3bn lifeline granted in February last year. The UK's largest water company, which serves 16 million customers in London and the Thames Valley, admits it cannot complete its debt restructuring before the cash runs out. Prime Minister Andy Burnham's vague promises of "greater public control" have added fresh uncertainty to already stalled talks, with the company's total debt pile now standing at around £20bn.

Thames Water's creditors — led by American hedge funds Elliott Management and Silver Point Capital — have effectively controlled the company since its shareholders walked away.

Ofwat today separately fined Severn Trent-owned Welsh firm Hafren Dyfrdwy £280,000 for sewage spills, the ninth case in its sector-wide investigation — underscoring the industry-wide rot.