Thames Water talks over rescue plan ongoing as bill hikes drive revenues higher

Dan Coatsworth, head of markets at AJ Bell, said: “Debt levels at Thames Water are rising fast enough that there will be genuine worries about the levees breaking on its balance sheet before it can secure a rescue deal.

“To howls of protest from many households, the company has been able to push up profit as it raises bills.

“Yet its cash is still due to dry up early next year and an agreement with its creditors needs to be forged by then if it is to avoid government-supervised administration.

“A big sticking point may be agreeing to dilute performance targets with the regulator which may be a hard sell with other stakeholders.

“To be a black sheep in a water utility sector which has alienated politicians, regulators and the public in recent years thanks to pollution, financial issues and higher bills is quite something, but there is no sign of Thames Water shaking that tag.”