Thames Water, the UK's largest water supplier, is facing a multifaceted crisis characterized by complex corporate structures, potential financial instability, and environmental and operational challenges. The company's use of 'whole-business securitisation'—a financing method more commonly associated with U.S. fast-food franchises—has raised concerns about its ability to attract future financing, especially if senior bondholders suffer losses, as indicated by a Barclays survey. Investor fears of contagion have also been reported. This situation is exacerbated by a planned £2 billion dividend payout amidst financial turmoil. Additionally, after 35 years of privatization, Thames Water and Southern Water reportedly lack complete sewage network maps, complicating efforts to address necessary repairs and regulatory oversight. The company has also admitted to contributing to pollution in the River Ver, and its staff have faced public abuse.
Thames Water says staff enduring abuse from public https://t.co/5EwgEemIz3
Thames Water says staff enduring abuse from public https://t.co/Q9nNjO8pDB #bbcsouthnews
Thames Water says staff enduring abuse from public https://t.co/abqXbZer0z
River Ver pollution is 'unacceptable', Thames Water admits https://t.co/lJCqfm52xb
Privatisation has undermined our public services. They work better run for people, not profit. Kick out private profit to: 🌊Sort out sewage in our rivers 💙 Fund our NHS properly 🚍 Cut cancellations and delays in public transport Your services should be accountable to YOU. https://t.co/GlIJJoHP49
Thames Water is planning one last £2bn dividend payout before it goes bust. Absolutely outrageous behaviour.
After 35 years of privatisation Thames Water and Southern Water lack complete maps of sewage networks. They have no idea of repairs or investment needed. How much sewage dumped from networks not mapped? Regulators failed. Must end privatisation scam. https://t.co/dZKfQFyr0Y
#Explained: How UK's Biggest Water Supplier, Thames Water, Sank Into Crisis https://t.co/3MDhYJgukH https://t.co/B9BDhc3vIK
Investors fear Thames Water contagion, Barclays says https://t.co/jtalPE3gVs
How UK’s biggest water supplier sank into crisis https://t.co/08EVeI5IPB
The UK’s water industry may struggle to attract fresh financing should Thames Water’s senior bondholders end up facing losses, according to a survey of investors by Barclays https://t.co/cPcgjKkVfM
Why do water companies like Thames Water have such byzantine corporate structures? @EuanHealy and I breakdown the quirks of “whole-business securitisation”, which in the US mainly funds fast-food franchises, but in the UK underpins essential utilities https://t.co/7DQ40Wxbjw