Thames Water thrown £3billion lifeline to stop it running out of cash by Christmas

THE UK’s biggest h2o institution has been thrown a lifeline to halt it moving retired of currency by Christmas.

Troubled Thames Water yesterday said it had secured a indebtedness of up to £3billion.

The caller indebtedness volition springiness it the indispensable breathing abstraction to proceed talks with different investors astir injecting caller currency into the business.

Chris Weston, the firm’s main executive, said it was the “best option”.

If Thames Water — which supplies 16million households — does not find a semipermanent reply and runs retired of cash, it volition beryllium transferred into impermanent Government ownership.

Regulator Ofwat said safeguards are successful spot to support h2o supplies.

Thames — which volition beryllium successful astir £18billion of indebtedness by the extremity of March — has asked existing creditors to enactment successful £1.5billion to widen its resources to adjacent October.

A further £1.5billion successful loans tin beryllium accessed if it succeeds successful its entreaty against regulator Ofwat connected however overmuch it tin enactment up bills.

Ofwat said successful July the supplier could lone rise bills by 22 per cent, but the steadfast wants a 53 per cent rise.

Castle Water, co-founded by Tory treasurer Graham Edwards, is progressive successful concern talks.

Infrastructure capitalist Brookfield, backstage equity elephantine Carlyle and Hong Kong billionaire Li Ka-shing, who controls Northumbrian Water, are besides weighing it up.

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