UK Appoints Adviser for Thames Water Potential Collapse

The UK government has appointed FTI Consulting to advise on contingency plans for Thames Water, the country's largest water utility, in case it collapses and needs to enter a Special Administration Regime (SAR), a state-supervised process similar to insolvency for essential service providers. Thames Water is currently heavily indebted, having reported a £1.65 billion annual loss and a debt increase to £16.79 billion, and is seeking £5 billion in financing from senior bondholders to avoid nationalisation. While the company stated in July it had enough funds to operate for 12 months, regulatory adjustments are required for the financing deal to proceed. Environment Secretary Steve Reed, who opposes nationalisation, has approved the appointment of FTI Consulting, but any administration process would require court approval. The government emphasized that it remains prepared for all scenarios and will act in the national interest to ensure continued service to Thames Water’s roughly 16 million customers, about a quarter of the UK population. Private sector rescue efforts have faltered, including the withdrawal of private equity firm KKR from a proposed £4 billion equity investment.