Thames Water boss talks Burnham 'risk' as customer complaints surge 101%

Thames Water has warned funding is due to dry up by November and further money will be dependent on the views of incoming PM Andy Burnham, as its major lenders seek to shore up its financial future.

The company said it had £1.1bn to tide it over and creditors were holding out on more funding, pending the handover of power to Mr Burnham due next week.

Britain's biggest water utility made the remarks amid the release of annual results that showed Thames had only met 55% of its regulated targets and that customer billing complaints had risen by 101%.

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The figure was likely driven by gripes over inflation-busting increases, allowed by the regulator Ofwat to fund record but overdue investment in infrastructure including pipes and storm drains.

CEO Chris Weston told Sky News uncertainty about the Burnham-led government's plans for the water industry had increased the risk that a deal to bail out the troubled company could collapse.

"The situation is very fluid, there is a lot of uncertainty, which has been added to by the change of Prime Minister, understandably as it's very important to understand what the new PM plans will be for Thames Water", he said.

"We are continuing to develop the recapitalisation proposal with our creditors and that may or may not be acceptable to the new government.

"We have not had any direct discussions [with Burnham], understandably as I'm sure he has a long list of issues to consider, but it does heighten the risk. Our creditors continue to be supportive, but it does heighten the risk.

"It is right that the company's cash will run out in Q4 but we did get a letter of support from the creditors which shows they will extend support well into next year".

It is highly possible the extra lifeline will be needed as talks involving the government, creditors and Ofwat drag on in a tougher regulatory regime.

Two years ago, shortly after Labour took office, Mr Weston told Sky News he was confident that he would turn around the ailing utility, and defy government legislation that could see failing water bosses jailed.

Asked if that remained the case he said: "Absolutely, I am more confident than ever, it just takes consistency in leadership, a clear operation plan, and time and effort. And I'm also confident I will retain my liberty!"

The financial hole engulfing Thames, which has been slapped with record fines for poor performance, was laid bare in the results through a growing debt pile to £18.5bn over the 12 months to 31 March.

Thames revealed its progress hours after a Sky News story reporting that the creditors had agreed to further funding, pending a decision on their planned £10bn rescue, which would see the consortium take control under a new business called London and Valley Water.

The terms are being reworked after recent criticism from the environment secretary that they represented a poor deal for the company's 16 million customers.

Failure to agree the package would likely push Thames into a Special Administration Regime, a move that could potentially pave the way for nationalisation under a government led by Mr Burnham.

He has previously voiced support for public ownership of the long-criticised water sector.

Thames said in its results statement that it was in a "strong position to accelerate the delivery of the biggest upgrade of our infrastructure in 150 years".

It is aimed at bolstering its operational and environmental performance following a series of penalties for missing targets and failures, including sewage discharges.

Thames said that total pollution incidents over the 12 months fell to 386 from 470 the previous year, but it admitted that it represented a new missed target, alongside those covering leakages and supply disruptions.

The statement suggested that Thames was preparing for further fines ahead as a consequence, with proposals for an £800m up front payment in place to avert years of crippling penalties.

It pointed to a 40% hike in the likely fine for missing its pollution obligations despite the fall in the number of incidents.

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Mr Weston said: "Bills alone cannot fund the required investment: Thames Water still needs debt funding, creditor support, and ultimately a recapitalisation.

"This is taking longer than originally expected, because of its scale and complexity. Nevertheless, it is moving forward and teams continue to work with our stakeholders to reach a position that delivers the best outcome for customers, communities and the environment."

(c) Sky News 2026: Thames Water boss talks Burnham 'risk' as customer complaints surge 101%