According to a report from Sky News, Britain is developing contingency plans to assume temporary state ownership of Thames Water, the country's largest water supplier, in the event of its

collapse. Over the past year, water companies in England and Wales have faced criticism for sewage spills, aging infrastructure, and escalating bills, leading to increased scrutiny of the industry that was privatized in 1989.

The concerns surrounding Thames Water go beyond its £14 billion ($17.8 billion) debt. The government is also examining water bills, with a study by The Times suggesting a potential average increase of 25% between 2025 and 2030.

Public outrage has been fueled by the payment of dividends to investors and substantial salaries and bonuses awarded to executives in the water industry. As ministers and regulator Ofwat evaluate the situation, Thames Water, which supplies approximately 27% of the UK's population, is being considered for inclusion in a "special administration regime," effectively placing it under temporary state ownership should it face failure.

Campaign groups have accused water companies, including listed operators Severn Trent, Pennon Group, and United Utilities, of failing to invest adequately in infrastructure. Thames Water's ownership structure involves financial investors, with the largest shareholder being the Canadian pension fund Ontario Municipal Employees Retirement System holding a 32% stake, and the UK pension fund Universities Superannuation Scheme owning 20%.

In an attempt to improve operations and reduce debt, Thames Water is reportedly seeking to raise £1 billion from shareholders, as reported by The Daily Telegraph. The company is facing significant pressure, as evidenced by the sudden resignation of Chief Executive Sarah Bentley after two years in the role. She has been replaced by two co-chief executives, Alastair Cochran, the Chief Finance Officer, and Cathryn Ross, former Ofwat boss, who has been with Thames Water since 2021.

The continuous headlines highlighting rivers and beaches contaminated by sewage discharge from water companies are likely to make water management a significant issue in the upcoming general election, expected next year. The release of sewage into waterways should only occur during exceptional rainfall to prevent it from backing up into homes, but campaigners argue that water companies are discharging sewage more frequently than necessary.

Data from the Environment Agency reveals that in 2022, water companies in England alone released raw sewage into rivers and seas 301,091 times, averaging 825 times per day.

At the time of reporting, Thames Water, Ofwat, and the Department for Environment, Food and Rural Affairs in Britain were not immediately available for comment. Photo by Jim Linwood, Wikimedia commons.