Crisis in the largest water and sewage company in England

Thames Water announced today (Thursday) that its shareholders have refused to pay the first installment of this vital amount, which was supposed to be paid in three days (April 12), due to what it called the company’s inability to qualify for assistance.

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According to observers, this decision could bankrupt the water distribution giant in England, and in that case the government will be forced to keep the company afloat by injecting taxpayers’ money.

Chris Weston, chief executive of Thames Water, warned on BBC Radio 4 today that if the company’s financial problems are not resolved by next year, it will go bankrupt. At the same time, he assured the company’s 15 million subscribers who are anxiously following the news that Thames Water’s activity will not stop.

This English company has been under pressure in recent years due to mismanagement and has been fined many times. 2 years ago, Thames Water was fined 4 million pounds due to the sewage leak scandal and another 11 million pounds for overcharging customers.

Thames Water is the largest water company in England, which was established in 1989. This company treats 2.5 billion liters of drinking water and 4.6 billion liters of wastewater daily with about 15 million subscribers (equivalent to 25% of the British population); But its old infrastructure has repeatedly caused leaks and pollution in the environment, and for this reason it has suffered heavy fines.

On the other hand, this company is facing a heavy debt of 14 billion pounds due to excessive distribution of dividends and simultaneous granting of loans to its shareholders. The shareholders’ emergency package of 750 million pounds was supposed to save the company from the brink of bankruptcy, but with their recent decision, the outlook of the company’s life is uncertain.

Of course, the unstable situation of the British economy has not been unaffected by the aggravation of the Thames Water situation. According to a report published today, England officially entered the economic recession period in the last quarter of 2023 and is going through a turbulent period in terms of financial problems. According to statistics, this country is in the lowest position of the G7 economy, and Brexit will damage its economy by 100 billion pounds annually.

Many businesses operating in the UK have gone bankrupt or moved to other European countries as a result of Brexit. Observers believe that it will take at least a decade to recover from the shock caused by this phenomenon.

Source: IRNA