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...That has left the company rushing to raise more than £3bn in fresh capital by 2030, including £750mn by next year, to keep services running and improve its water and sewage infrastructure....
...Water companies have pushed for the bill increases to pay for maintenance and investment as well as to service their debt, encourage investors to inject equity and underpin future borrowings....
...The company, which provides water and sewage services to around 15mn customers, has been struggling with the effect of higher interest rates on its £18bn debt as well as labour, energy and materials cost...
...Other debt-laden water companies are wrestling with higher financing costs on borrowings, as well as historically steep construction, energy and labour prices....
...and sewage services to millions of customers....
...supplies water and sewage services to about 25 per cent of England’s population, would have far-reaching consequences....
...The proposal comes as the company struggles with the effect of higher inflation on labour, energy and materials costs, making it more expensive to deliver existing projects....
...One of the received tenets of the energy transition was that there was no trade-off between green investing and making money....
...Thames Water, the UK’s biggest water company, provides water and sewage services to 16mn people, or around 25 per cent of the population....
...Hell or high water can come to the financing arrangements outside the ringfence and the company providing water services can continue unscathed....
...restricts the ability of bondholders to seize assets if Thames Water is unable to service its debts....
...In a statement of intent, the shareholders have hired restructuring advisers at Alvarez & Marsal to engage with the creditors of Thames Water’s ultimate parent, Kemble Water Holdings....
...Already-poor service levels would deteriorate further. In the meantime, there is a risk of Thames’s toxicity starting to pollute other water companies....
...richard.waters@ft.com...
...Yet the challenges confronting the likes of Thames Water and many others among the UK’s 17 suppliers of water and sewerage services do smack unnervingly of the issues that banks faced in the period running...
...The model, in which Thames Water’s cash flows service different tiers of debt, tends to result in higher investment-grade ratings for top-ranked bonds than standard corporate bonds at companies with similar...
...Macquarie put in place a so-called “whole-business securitisation”, where the utility’s cash flows service different tiers of debt....
...Thames Water, which provides water services to 15mn people in southern England, is facing the prospect of a messy debt restructuring or even a temporary renationalisation amid public anger over sewage pollution...
...The company, which provides water services to 15mn people in England, is now facing a messy debt restructuring or even the prospect of a temporary renationalisation under the government’s special administration...
...In the meantime, Thames Water’s ability to service its £18.3bn debt pile has been put under pressure by the regulator’s moves to limit dividend payments....
...Consumer editor Claer Barrett investigates how customer service got so bad....
...SAR only applies to regulated opcos that are insolvent, however, or have flunked on service quality. The failure of a non-regulated entity like Kemble Water Finance is, in isolation, not enough....
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...Thames Water has asked Ofwat to approve a 56 per cent real-terms increase in bills by 2030 as well as leniency on dividend rules and fines for pollution and other service failures....
...He said Labour was retaining the policy’s main elements: a state-owned £8.3bn energy company called GB Energy; a £7.3bn “national wealth fund” to decarbonise heavy industry; and a home insulation scheme....
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