UK water companies might follow Thames Water's troubling money path
Private Barclays report shows all British water firms face money problems similar to Thames Waterʼs situation. Europeʼs investors now see UK water sector as most risky utility investment area
A non-public Barclays report warns that British water companies face money problems that look like Thames Waterʼs current troubles
The bankʼs research shows how UK water became Europes most un-safe utility investment (with 75% of investors seeing it as high-risk since last spring). The report which came out last thursday criticizes water regulator Ofwatʼs rules as not-helpful for getting new money into the industry
Water firms want to raise home-bills by more than Ofwatʼs suggested £19 yearly increase from 2025 to 2030; they say they need £105-billion for fixing pipes - not just £88-billion. Thames Water which has £15-billion in debt needs quick cash to stay working‚ while the govt doesnt want full state control but might use special rules to run it for a bit
The report shows growing worry about UK water investments: more people think bad news about one company hurts the whole sector. Ofwat will decide about bill increases in the next couple months but some govt people dont want customers paying for water firms past mistakes
