Government ‘prepared for range of scenarios’ amid fears of Thames Water collapse | Politics News

The government said it is prepared for a range of scenarios amid fears Britain’s biggest water company could collapse.

Sky News has learnt that ministers and Ofwat, the industry regulator, have started to hold discussions about the possibility of placing indebted Thames Water into temporary public ownership.

Contingency plans are being drawn up amid growing doubts in Whitehall about the ability of the firm to service its £14bn debt pile up.

“This is a matter for the company and its shareholders,” a government spokesperson said on Wednesday.

“We prepare for a range of scenarios across our regulated industries – including water – as any responsible government
would.”

They added: “The sector as a whole is financially resilient. Ofwat continues to monitor the financial position of all the key water and wastewater companies.”

Thames Water serves 15 million customers across London and the southeast of England, and has come under intense pressure in recent years because of its poor record on leaks, sewage contamination, executive pay and shareholder dividends.