According to two people with knowledge of the situation, granted anonymity by POLITICO to speak about sensitive matters, Thames Water will run out of money if there is not a resolution to the case by March 24 — which would mean the company crashing into special administration.
Treasury officials met on Wednesday to game-plan this scenario and draw up plans for a temporary rescue of Britain’s largest water firm.
Thames Water has said in the past it needs £2 billion a year to function, which would provide yet another headache for Britain’s cash-strapped Chancellor Rachel Reeves as she prepares to slash public spending in other areas.
A British government spokesperson said: “The company remains stable and the government is closely monitoring the situation. It would be inappropriate to comment further on ongoing legal proceedings or private company financial matters.”
One of the people involved in the situation said the Treasury “is only just waking up to the fact that this is now a reality. They assumed market-based rescue was possible.”
Public outrage
Thames Water is Britain’s largest water firm, serving around 16 million people.
