LONDON (Reuters) – Investors in troubled British water company Thames Water appear reluctant to put in more money, the country’s regulator Ofwatt said on Wednesday after the firm’s chief executive was heavily indebted. He said it was because he defended the director of the sector.
Thames Water, which supplies water to about 27% of the UK population, has announced another £1bn ($1.3bn) of capital to help build infrastructure and deal with the rising costs of its £14bn mountain of debt. are trying to procure
That fate shines a light on Britain’s broader water sector, which has racked up debt after privatization and sparked a public backlash in recent years by dumping untreated sewage into rivers and the sea.
“The company is in talks with investors about securing new stakes,” said Ofwatt boss David Black. Asked on BBC radio if investors were reluctant, he said: “Yes.”
“The Thames is seeking new funding to enter the business early next year.”
He expects companies to want the next regulatory cycle to raise consumer bills and fund infrastructure development, and it has hitherto been the job of water companies to manage debt levels. But he added that now the regulator has more control over it. sector.
Ofwatt CEO Black told BBC Radio: “Companies need to take responsibility for their funding structures. We are here to protect the interests of our clients.”
(1 dollar = 0.7865 pounds)
(Reporting by Muvija M and William James, Editing by Kate Holton)
