Thames Water has started exploring plans to raise further capital, just months after shareholders agreed to pump £1.5bn into the company.
As first reported by Mark Kleinman for Sky News, the UK’s biggest water firm is discussing plans to raise additional funding to help support a transformation plan set out under chief exec Sarah Bentley.
Thames Water has come under increased scrutiny in recent months over executive pay packages and performance concerns. The firm recently introduced a hosepipe ban, which has impacted 10m customers across the south of England.
A Thames Water spokesperson told Sky News: “Like all businesses, Thames Water actively manages its financial position.
“This year, we have successfully raised additional equity from our supportive shareholders and have refinanced maturing debt in order to put us in the best possible position as we continue to execute against the eight year turnaround plan that we launched in May 2021.
“As we look forward to the next regulatory period, and consider the evolving expectations of the regulator and the effects of a changing climate, we keep a range of opportunities under consideration to ensure that we can optimise delivery for customers today and over the long term.”
The company’s owners, which include private equity groups and pension funds, said in June that they would provide an initial £500m of new equity this financial year.
Thames Water, which provides water and sewage services, said it was working with investors to provide a further £1bn of equity as it tries to “improve financial resilience.”