Thames Water is facing almost £2 billion in financing and advisory costs, intensifying pressure on the UK's largest water supplier as creditors and the government consider options for its future.

The company expects around £1.6 billion in financing costs between April 2025 and September 2026, alongside approximately £335 million in exceptional advisory and legal fees.

Thames Water is largely controlled by its creditors after previous owners abandoned the company. Its lenders are now proposing a revised rescue plan that could include a £2 billion bridging loan, while seeking regulatory concessions.

The government is considering whether to allow a private-sector restructuring or place Thames Water into a special administration regime, which could amount to temporary nationalisation. The outcome could have significant consequences for Britain's water industry, infrastructure investment and financial markets.