Thames Water announced a pretax loss of £1.65 billion ($2.22 billion) for the past year, as the UK’s largest water utility battles mounting financial pressures and worsening environmental

performance. The company also revealed a significant increase in sewage spills, which rose by a third over the year.

The loss was driven by several major charges, including a £1.27 billion provision for a loan from its parent company now considered unrecoverable, £122 million in fines, £198 million in fees related to its restructuring plans, and £151 million in associated costs.

Facing the risk of nationalisation due to its heavy debt load, Thames Water is seeking approval for a financial rescue package supported by its senior creditors.

Chief Executive Chris Weston acknowledged the company’s unsustainable debt levels and outlined the urgent need for recapitalisation. "We recognise that our current gearing is too high," Weston said. "To address this, we are progressing with our Senior Creditors' plan to recapitalise the business, which will help us return to a more stable financial footing."

Weston also warned that any meaningful turnaround for Thames Water would require significant regulatory changes and at least a decade to complete. Photo by Jim Linwood, Wikimedia commons.