If you’re a customer of Thames Water then these may be worrying times as fears are growing that its parent company is about to collapse within a matter of weeks.
According to the Guardian, the country’s biggest water supplier has assembled a team to carry out restructuring talks this week after investors indicated they would not put further funds into the cash-strapped company.
Management at Thames Water has also appointed experts at Teneo, the adviser that managed the collapse of Bulb Energy, to help navigate the frosty standoff that has threatened the future of its parent company, the Kemble Water Group.
Additionally, Thames is also continuing to work with advisers at Rothschild to explore potential financing options for the company but as of yet, nothing is in place, which raises a whole host of questions for staff, investors and customers of the company.
Just a few weeks ago, reports in The Financial Times stated Thames Water’s shareholders were willing to inject a further £3.25bn into the business – if Ofwat allowed it to ramp up customer bills by 40 per cent by 2030, while also being lenient on the fines it’s incurred and allowing more dividend payments.
However, these requests were denied by the regulator, which has left the south-east supplier in this current predicament.
Performance
This isn’t the first time Thames Water has been in the news for all the wrong reasons lately. Just last November, the company was hit with a £73m fine for the amount of pollution and leakages.
This comes after reports of mounting debts and accusations of financial mismanagement, with Ofwat reprimanding the company due to a huge dividend payment it made.
While announcing its six-month financial results towards the end of last year, the company revealed that shareholders were awarded a combined £37.5m – despite spiralling debts totalling £14.7bn.
This was a breach of Ofwat’s recent rule that was introduced in May which states that companies should only declare or pay dividends after taking into account the delivery of service for customers and the environment, as well as considering current and future investment needs and financial resilience over the long term.
So Thames Water has exactly covered itself in glory, and reports of the company potentially going under will worry its customers who will be looking for stability from their supplier.
Comparing Water Suppliers
If you’re a customer of Thames Water then you may well be concerned with this news, and for good reason. After all, you want to know the company you’re handing your hard-earned cash over to is able to keep its head above water – pardon the pun!
For households, sadly there’s not a lot you can do as your supplier is fixed. However, for those of you who own a business, it’s possible to change water suppliers.
Here at SwiftSwitch, we believe news like this merely highlights the importance of comparing water suppliers to ensure you’re partnering with a reliable water company.
When it comes to finding a reputable water supplier, some perform better than others. Customer service, as well as price, may also be important for you as a business owner, and these factors should all be taken into consideration when you’re looking to switch suppliers.
At SwiftSwitch we offer detailed information on many different suppliers including how they’re performing, so you’ll have all the info you need to make the best decision for your business.
Another benefit of using a broker like SwiftSwitch is we continually stay informed about all of the latest news and market developments, so if you’re keen to partner with a company that’s providing a reliable service then we’re here to help.
