Thames Water, the UK's largest water company, is facing a critical financial crisis with a staggering £20 billion debt. Ofwat warns that potential nationalization might lead to substantial taxpayer losses and reduced pension entitlements for 12,000 employees. The company is seeking a £3 billion emergency loan, supported by the majority of lenders, to restructure before it runs out of cash. However, opposition exists among some lenders and public officials who argue against further debt accumulation, claiming it could result in higher bills for customers. A court decision on the loan is forthcoming.
Ofwat has not disputed that placing Thames under government control in the event the debt-laden company collapsed could end up costing taxpayers billions of pounds.
12,000 current and former employees could also see future pension entitlements reduced, according to documents seen by the BBC.
Liberal Democrat MP Charlie Maynard, who argued that piling on more debt was not in the public interest, launched an appeal against the 3bn rescue loan.
Thames would be barred from recovering any additional interest payments from customer bills, insisting it had seen no evidence to support claims of negligible costs to taxpayers.
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