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Thames Water agrees £750m funding deal but warns ‘significantly’ more needed

The utility is struggling under a £14 billion debt pile.

Thames Water has said its shareholders have agreed to pump another £750 million in funding into the utility giant, but warned another £2.5 billion will be needed by 2030 as it struggles under a £14 billion debt mountain.

The supplier said the initial funding agreement to the end of March 2025 was a “major milestone”, although it admitted “significantly” greater support would be needed for its turnaround to be delivered.

It said the further support from shareholders for the 2025-2030 period “will depend on the finalisation of the business plan and the regulatory framework that will apply”.

The funding agreement came as its annual results laid bare the financial woes at the group, with debts swelling to £14 billion from £12.9 billion the previous year and remaining in the red with underlying pre-tax losses of £82.6 million for the year to March 31.

Cathryn Ross and Alastair Cochran, interim co-chief executives of Thames Water said: “This announcement is a major milestone for Thames and all our stakeholders.

“The substantial equity support package announced today will underpin the delivery of a more focused turnaround plan that builds on the foundations that have been put in place over the last two years.”

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