Thames Water Avoids Government Takeover after Court Rejects Appeal

Thames Water has avoided government ownership after the Court of Appeal rejected a legal challenge to its financial restructuring plan.

The ruling upholds last month’s High Court decision, allowing the UK’s largest water supplier to proceed with a £3 billion loan aimed at stabilising its finances while it seeks further private investment.

Without the loan, Thames Water had warned it would run out of funds by 24 March 2025.

Legal Challenge Rejected

The appeal, led by Liberal Democrat MP Charlie Maynard and a small group of creditors, argued that special administration (government control) would better serve customer interests. However, the court sided with Thames Water, dealing a blow to campaigners advocating for public ownership.

The company is struggling under a £19bn debt pile after failing to secure new investment from existing shareholders. Investor confidence has been shaken by regulatory fines from Ofwat over rule breaches, further complicating its financial stability.

The decision sparked outrage among public ownership campaigners but was welcomed by Thames Water.

Matthew Topham, lead campaigner for We Own It, criticised the ruling, stating:

“As a vital public utility serving a quarter of the population, the Environment Secretary should be charting a course toward public ownership. Instead, this deal will see nearly £1bn of households' cash wasted on interest payments and fees.”

Meanwhile, Thames Water CEO Chris Weston expressed relief:

“We remain focused on putting Thames Water on a more stable financial foundation. Today’s news demonstrates further progress.”

The first half of the £3bn loan is expected to be delivered in the coming months, ensuring Thames Water can continue operations—at least for now.
Source: Sky news