Thames Water appears to be in trouble. The company, which has billions in debt, is in talks with the Treasury about a possible bailout. We may soon be adding the firm, which serves one in four Brits, to the list of victims of rising interest rates.
‘Victim,’ in this case, is perhaps the wrong word. It’s hard to feel sorry for a company that has been relying on ultra-low rates to keep itself afloat, racking up £14 billion worth of debt and now severely struggling to service it.
Financial mismanagement is just one of a series of accusations levelled against the company. Its problems have been in the spotlight for years, especially for its links to leaks and pollution. Its CEO Sarah Bentley stepped down yesterday, forgoing her bonus. Now the question is whether its new boss will temporarily be the government, if Thames Water’s financial situation proves so dire that a new buyer must be found.
It’s hard to feel sorry for a company that has been relying on ultra-low rates to keep itself afloat
Chancellor Jeremy Hunt has been walking a tricky tightrope this week.
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