1 year ago
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Image source, Getty Images
By Faarea Masud
Business reporter
The UK's largest water company Thames Water will need "substantial sums of money" to stabilise its finances, the water regulator has said.
Ofwat boss David Black said talks between the firm and investors to raise the extra funding were continuing.
The water firm, which serves a quarter of the UK population, is billions in debt and is under pressure to fix its finances after fears it could collapse.
There have been calls to nationalise the firm after its boss quit last week.
"We need to see their revised business plan but we think it's substantial sums of money (that are needed)," Mr Black said, whilst being quizzed at a Lord's business committee
Mr Black said problems were most acute at Thames Water, and that he did not see the same level of issue at other companies.
The hearing came hours after an announcement that Thames Water has been fined £3.3m after it discharged millions of litres of undiluted sewage into two rivers in Sussex and Surrey, killing more than 1,400 fish in 2017.
Thames Water has faced heavy criticism over sewage discharges and leaks. The company leaks more water than any other water company in UK, losing the equivalent of up to 250 Olympic size swimming pools every day from its pipes.
The government has said "a lot of work is going on behind the scenes" and that a process was in place "if necessary".
Last week, one of the UK's largest private pension funds Universities Superannuation Scheme (USS), was the first major investor to publicly back the firm to turn around its finances and performance.
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