Shareholders have pumped in another £750 million in funding in an attempt to bail out Thames Water, but there are warnings a further £2.5 billion will be needed by the end of the decade.
Thames Water has mountain of debt so far totalling £14 billion.
The utility giant said that the £750 million funding agreement will end at the end of March 2025 which is a “major milestone.”
The funding is less than the £1 billion Thames Water wanted and said that further support will be “significantly” needed in the coming years.
The supplier said that further support from their shareholders for the 2025 to 2030 period, “will depend on the finalisation of the business plan and the regulatory framework that will apply.”
Thames Water chairman Ian Marchant said the new funding deal, is “the largest equity support package ever seen in the UK water sector.”
Interim co-chief executives Cathryn Ross and Alastair Cochran said, “This announcement is a major milestone for Thames and all our stakeholders.
“The substantial equity support package announced today will underpin the delivery of a more focused turnaround plan that builds on the foundations that have been put in place over the last two years.”
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