Thames Water believed to be close to deal with lenders
The company is trying to avoid going into temporary public ownership
Last updated 31st Jan 2026
Thames Water is edging closer to a multi billion pound rescue deal with lenders.
Reports suggest a group of creditors holding 13-billion pounds of the firm's debt is understood to be aiming to sign an in-principle agreement with regulator Ofwat next month.
The move would keep the cash-strapped company out of temporary public ownership.
Thames Water's creditors pledged to provide £3 billion of emergency funding to keep the company afloat last year.
Any agreement reached requires the approval of Ofwat, the Environment Agency, the Drinking Water Inspectorate - and sanctioning by the courts.
If terms are approved by regulators and Emma Reynolds, the environment secretary, they would also have to be scrutinised in a public consultation.
That's necessary because Ofwat would be required to make modifications to the company's operating licence.