The boss of Thames Water has demanded urgent clarity from prime minister-in-waiting Andy Burnham, warning that the stricken utility could run out of cash by October unless a funding deal is struck. Chris Weston told the Press Association that the group’s finances are “not sustainable” and called the incoming PM’s plans for the water industry “the big unknown”. “We’ve had no conversations with him and it would be better to know what he’s thinking,” he said.
Burnham, expected to be appointed prime minister as soon as next Monday, has signalled a 10-year plan to renationalise the sector, leaving a question mark over the future of Britain’s biggest water supplier. The uncertainty comes as Thames Water’s creditors were sent back to the drawing board after Environment Secretary Emma Reynolds last month warned their £10 billion rescue plan did not go far enough to protect customers or the environment.
“Thames Water could run out of cash by October; CEO seeks clarity from incoming PM Andy Burnham on renationalisation plans.”
The group’s full-year results revealed debts swelled to £19.77 billion, up from £17.73 billion, despite swinging to a pre-tax profit of £226.4 million from mammoth losses of £1.65 billion the previous year. Cash outflow stood at £1.1 billion before any new debt raising, with customer bills unable to cover the massive investment costs, even after April’s tariff hikes. “Bills alone cannot fund the required investment,” Thames Water said, highlighting its reliance on debt funding, creditor support, and a eventual recapitalisation.
Customer complaints over billing doubled year-on-year following the increases, while overall complaints – including those about operations – rose 77%. Weston’s own pay package increased to £1.06 million, including a £99,000 deferred retention payment awarded before the Water (Special) rules came into force. He stressed the situation is “not terminal” but said the utility’s funding is running out: Thames Water has enough money only until October, relying on creditors to extend financing into 2027. “The sooner the better,” he told PA, as the group serves 16 million customers across London and the South East – and met just 55% of its regulated targets, up from 38% the previous year.