War-torn Thames Water saw a 40% rise in pollution incidents as its debts continued to mount and its survival was at a critical juncture.
Britain’s biggest water supplier reported 359 so-called category one to three contamination incidents in the six months to September 30, which it said were due to a wet spring and summer.
Its boss Chris Weston said the company had made “solid progress” in its efforts, but the record rainfall meant pollution and spills had “unfortunately escalated”.
The ailing business is saddled with debt that was just under £16bn in those six months, up 7% on the previous year.
The firm has said that there is a need to increase consumer bills or it will not be able to get out of its financial crisis. However, if the company collapses, the water supply will not be affected.
Water firms across the UK have faced a backlash over sewage spills and pipe leaks in recent years, but the Thames has been in the spotlight for its debt pile, and the fact that every UK One in four people depend on it.
Critics have argued that the water industry has historically ignored investments in favor of paying executive bonuses and shareholder dividends.
Water bills could rise by an average of £19 (21%) a year between 2025 and 2030, but a final decision on the proposed increases is due on 19 December.
Thames Water has previously said it needs to raise bills by 53 per cent to shore up its finances.
The company may run out of cash in the first three months of 2025, which is why its creditors have It has offered it a further £3bn cash loan. To be issued in two tranches, the first of which £1.5bn could be released in February.
It is awaiting a court date next week to approve a cash injection that could prove crucial as it would mean it has enough money to last until October next year.
An insider told the BBC that if it weren’t for the firm’s huge debt pile, Thames would be in a sound financial position.
In its latest results, it reported pre-tax profits of £249.6m – up 20% on the previous year.
When Thames Water was privatized in 1989, it had no debt. However, over the years he took on a lot of debt.
Thames now needs to raise around £4bn in new equity, which does not need to be repaid.
While there are a number of interested parties who could put up the money, the investment will depend on how much the lenders are willing to borrow and whether the water industry regulator of water companies is allowed to raise the hefty bill. Will give or not?
Mr. Weston said on Tuesday that the company had “substantial interest” from potential equity investors.
But the equity injection process cannot be finalized until Ofwat takes a final decision on raising the bill in mid-December.
The chief executive called the decision a “significant” step that would be “fundamental” to the company’s future.
Bosses have argued they need the extra cash to make Thames Water “investment-capable” so they can secure fresh funding, and pay for improvements to its network of pipes and sewers.
Ofwatt has appointed an independent monitor to oversee Thames Water as it seeks to transform it.
The watchdog recently banned three companies, including Thames, from using consumer money to pay executive bonuses as bills continued to rise.
On Tuesday, Mr Weston defended bosses getting £770,000 in bonuses, saying the firm needed to offer “competitive” packages to attract top workers.
“I fully understand that there are consumers out there who are struggling with their bills,” he added, pointing to the roughly 377,000 consumers who supported the bills last year.
Mr Weston, who was hired in January, was paid a £195,000 bonus for his first three months at the company.