Thames Water clients have been assured that “absolutely nothing” will occur to their payments or provide, because the closely indebted agency scrambles to boost money from buyers to stop its collapse.

Ministers have continued efforts to reassure the general public as Britain’s greatest water agency struggles below a £14bn debt pile, with the federal government mentioned to be laying the groundwork for the firm’s emergency nationalisation.

Health minister Neil O’Brien informed Sky News: “They are still in the process of finding further resources from their own shareholders and that’s the first place they should look to, obviously.

“Of course the federal government does have contingency plans if this does grow to be an issue.”

Politics Live: Boris Johnson allies to be named in special report on interference in partygate probe

Mr O’Brien refused to say if the utility agency may very well be taken into public possession as a final resort, insisting he was “not able” to disclose what the contingency plans are.

But in a message to Thames Water clients he mentioned that regardless of the consequence: “Absolutely nothing is going to happen in terms of either their bills or their access to water, we have contingency plans – like we do in all of these network utilities – to manage any difficult situations.”

On Wednesday, Thames Water mentioned it was working “constructively” with shareholders to safe further money.

The firm, which serves 15 million households, mentioned that it wants “further equity funding” on prime of the £500m it raised simply three months in the past.

The assertion got here after Sky News revealed the federal government is discussing inserting Thames Water right into a particular administration regime (SAR) that may successfully take the corporate into momentary public possession if it collapses.

Such an insolvency course of is uncommon and was used when the energy supplier Bulb collapsed in 2021, sparking issues that it may price taxpayers billions of kilos.

Click to subscribe to the Sky News Daily wherever you get your podcasts

Rebecca Pow, the water minister, didn’t say how a lot a authorities bailout may price when pressed on the matter by Labour within the Commons.

She insisted the water sector as a complete is “financially resilient” and the federal government is assured that Ofwat is “working closely with any company that would be facing financial stress”.

Read extra:
Ministers weigh contingency plan for collapse of Thames Water
Pressure on ‘rip off’ water industry unlikely to go away any time soon

However, a number of reviews on Thursday prompt issues about Thames Water’s funds had now broadened to different corporations within the trade.

And Kemi Badenoch, the enterprise secretary, admitted she is “very concerned” by the scenario.

Thames Water – owned by a consortium of pension funds and sovereign wealth funds – has come below strain lately over its poor efficiency in tackling leaks and sewage contamination, whereas dealing with criticism for handing out huge rewards to prime bosses and shareholders.

On Tuesday, Thames Water chief govt Sarah Bentley stepped down with immediate effect amid mounting worries over the monetary stability of the corporate and criticism of her £1.6m pay packet regardless of the corporate’s environmental efficiency.