A consortium of Thames Water creditors has outlined proposals for a £20.5bn investment programme designed to "fix the foundations" of Britain's largest water supplier.
The 15-strong investor group, operating under the name London & Valley Water consortium, intends to prioritise enhancing the company's environmental performance regarding pollution and sewage discharge – targeting a reduction of at least 135 spills annually, as reported by .
Under these fresh proposals, the collective will allocate £9.4bn towards addressing sewage problems – representing a 45 per cent uplift from existing spending levels.
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The strategy encompasses the replacement of 1,000km of water infrastructure, with £2.7bn from this capital injection earmarked for preventing additional sewage overflows.
The consortium includes Aberdeen, Elliott Management and BlackRock, entities that have previously advocated for a "regulatory reset" to prevent further deterioration in the supplier's operational standards.
Mike McTighe, the Openreach chairman recruited to lead the consortium, commented: "Over the next 10 years the investment we will channel into Thames Water's network will make it one of the biggest infrastructure projects in the country.
"Our core focus will be on improving performance for customers, maintaining the highest standards of drinking water, reducing pollution and overcoming the many other challenges Thames Water faces."
The utilities expert continued: "This turnaround has the opportunity to transform essential services for 16 million customers, clean up our waterways and rebuild public trust."
Thames Water time bomb
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In May, water regulator Ofwat imposed a record £123m fine on Thames Water for repeated failures, following what it termed as its "biggest and most complex" investigations ever conducted.
Of this penalty, £18.2m was attributed to rule breaches concerning dividend payouts.
At the time, the regulator asserted that Thames Water and its creditors would bear these costs, not the bill payers.
The beleaguered water supplier is in a race against time to stave off total collapse, amid whispers that Labour is already preparing for the company to be placed into a Special Administration Regime (SAR).
Earlier this week, Rachel Reeves stepped in to advocate for a "market-based solution" before the group plunged into special administration and required a government bail out.
The Chancellor maintained that any resolution must result in a "successful turnaround" for the provider, amid rumours that FTI Consulting is being prepared to advise on contingency plans if the company was wound up.