Thames Water could see their debt wiped after investors have put together a £17 billion plan to rescue to the water company.
A group of Thames Water lenders have put forward plans for a multibillion-pound rescue deal of the troubled supplier that would see them pump in new cash but ask for leniency in how it is regulated.
Creditors including US and UK investment firms – such as Aberdeen, Elliott Management and BlackRock – have submitted a plan to regulator Ofwat to overhaul £17 billion of Thames Water’s debts, including investing another £3 billion in new equity and a further £2 billion of funding.
It would also involve writing off “several billion” pounds’ worth of debt and a “complete loss for existing shareholders” in what they claim would be the “largest financial loss suffered by investors on an infrastructure asset in British history”.
The plans come after US private equity giant KKR last week pulled out of a rescue deal to inject much-needed cash into Britain’s biggest water supplier, which has 16 million customers and is sinking under £19 billion of debt.
It threw the future of Thames Water into doubt once more and raised the threat of temporary nationalisation by the Government if a deal cannot be agreed.
A spokesperson for the creditors said their turnaround plan was “designed to fix the root causes of Thames Water’s problems, restore its balance sheet, rebuild customer trust, and provide the financial investment and operational capabilities to fix the fundamentals of the business once and for all”.
They added: “The plan seeks to break from the patterns of the past by delivering customers’ priorities and improved outcomes for the environment in the shortest possible timeframe.
“The creditors include some of the largest investors in UK water companies, as well as UK and global infrastructure more broadly, with a proven track record of corporate turnarounds and long-term stewardship.
“These investors have the funding and experience required to deliver a transformation of the company’s performance which is intended to mark a departure from past failings, creating a ‘new’ Thames Water that works effectively alongside Government, regulators, and customers to deliver for the environment and economic growth.”
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Residents in Swindon have been heavily affected by Thames Water in 2025, with Old Town going without water for multiple days in May after a burst water pipe.
The town centre was also affected by a burst pipe which saw Fleming Way flooded.
Liberal Democrat MP Charlie Maynard, who has previously appealed against a £3 billion rescue deal for the utility, said: “What will it take for the Government and the regulator to put a stop to this horror show Thames Water customers are forced to suffer through and pay for?
“Having created a mountain of debt, all at customers’ expense, this latest plan for Thames Water would let them continue to pollute with impunity.”
The water supplier has been under the scrutiny of watchful eyes for a while. They halted their bonus scheme for senior executives after they were slammed for the idea in May 2025.
The Advertiser also reported that Thames Water had been ranked as the "least trusted" supplier in the country. They scored a trust score of 5.12 out of 10 on the annual study presented by the Consumer Council for Water.
A spokeswoman for Ofwat said the regulator had been “engaging regularly” with Thames Water over the funding plans.
“We have commenced a thorough review of the submission from the group of senior creditors,” she said.
“The submission includes their turnaround plans, approach to financial resilience and proposals for governance.
“Our focus is on assessing whether the plans are realistic, deliverable and will bring substantial benefits for customers and the environment.”
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