Thames Water has proposed to raise its bills by 56 percent over the next five years as part of its updated business strategy, which sources say has been submitted to the regulatory authority, according to reports.
The utility company faced a crisis last month when shareholders declined to provide an additional £500 million to support the struggling supplier, which is burdened with an £18 billion debt.
Originally, Thames Water had planned a 40 percent increase in bills to stabilize its finances but has since revised this to a higher rate, The Times reports.
Lenders to Thames Water could lose up to 40 percent of their investment if the company is nationalized.
The government’s backup plans, known as “Project Timber,” reveal that certain bondholders might lose between 35 and 40 percent of the value of their investments if Thames Water collapses, as initially reported by The Guardian. The company provides services to 16 million people.
