The future of Thames Water continues to be under immediate threat as politicians have called for the company to be placed into special administration.

Concerns are growing about the water company’s survival after it has piled up debts of £14bn while the Liberal Democrats have proposed for the firm to be reformed as a “public benefit company”.

According to reports, some of its major creditors have enlisted the services of multinational accounting firm Ernst and Young (EY) to guide them through their choices in light of an upcoming £190m interest payment scheduled for next month.

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The financiers have commissioned the Big Four firm because they are concerned about Kemble Water Holdings’ ability to pay the bill next month, national reports claim.

MP for Oxford West and Abingdon, Layla Moran, has called for the government to put Thames Water into special administration to “keep the taps running and end Thames Water sewage scandal” in the wake of its bankruptcy fears.

Bicester Advertiser:

Thames Water has come under scrutiny following sewage being released into rivers and streams in the county.

Oxfordshire's Conservative MPs have written a joint letter to the Thames Water chief executive demanding sewage pollution is tackled.

MPs David Johnston, Robert Courts, Victoria Prentis and John Howell have asked Thames Water to push for more investment and faster results to ensure sewage pollution is stopped as quickly as possible – and to request a meeting to discuss how this will be done.

Mr Johnston said Thames Water has confirmed an additional investment of at least £815 million to help tackle sewage pollution and cut sewage overflows by 84 per cent by 2050.

In the latest figures published by the Environment Agency, there were 196,414 hours worth of sewage spills from monitored storm overflows in the Thames Water network with an average duration of 11.6 hours in 2023.

A criminal investigation was also launched earlier this year after sewage was dumped into Witney's rivers which led to Ms Moran labelling Thames Water's performance as "shoddy".

The Environment Agency was investigating the company over allegedly releasing “significant” levels of pollution which affected Colwell Brook and Queen Emma’s Dyke which flow into the River Windrush in the west Oxfordshire town.

Ms Moran said: “The government must ensure they use new powers to keep the taps running for local people with Thames Water on the brink of bankruptcy.

“Ministers must act now before it's too late.

“So far, this Government has watched from the sidelines as asset strippers run Thames Water into the ground.

Bicester Advertiser: Thames Water is being put under pressure by MPs Thames Water is being put under pressure by MPs (Image: Newsquest)"Thames Water bosses have been profiteering off sewage dumping for years, and this must be the end of the line for them.

“People around here have had enough of Thames Water hiking bills and destroying the local environment.

“The final straw was last week when Thames Water bosses refused to stump up the cash for new sewage investments.”

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The calls come as high levels of E.coli have been found along a stretch of the River Thames that will be used for the historic Oxbridge Boat Race this weekend, researchers said.

The bacteria, which can cause serious infections, was discovered during regular testing by River Action and the Fulham Reach Boat Club between February 28 and March 26, using a World Health Organisation-verified E.coli analyser.

The 16 tests around Hammersmith Bridge in west London indicated an average of 2,869 E.coli colony forming units (CFU) per 100ml of water.

To meet the Environment Agency’s inland bathing water quality standards, the level should be below 1,000 CFU per 100ml.

Liberal Democrat Treasury spokeswoman Sarah Olney said:  “We must not allow these corporate arsonists to put out their own fire.

"Thames Water is no longer a functioning company, and the government has a choice. Either bail them out with taxpayer money or put the company under new ownership to steady the ship. 

Bicester Advertiser: Liberal Democrat Treasury spokesperson Sarah Olney

“Thames Water executives have pocketed disgusting bonuses, paid out billions to overseas investors, and allowed pipes to rust. 

“The outcome is a profiteering firm which has been allowed to destroy the environment with filthy sewage.

Bicester Advertiser: Thames Water has been criticised for sewageThames Water has been criticised for sewage (Image: Hugh Warwick)A Thames Water spokeswoman told the Oxford Times: "We regard any untreated discharges as unacceptable, and are committed to stopping them from being necessary, and were the first company to say publicly that they are unacceptable.

"We’ve led the industry in this area with the building of the Thames Tideway Tunnel, a £4.5 billion investment, which is nearing completion and will remove 24 combined sewer overflows from the tidal Thames."

The spokesperson added the water company would not comment on the calls for the firm to be placed into special administration.

A government spokesperson said: “Water companies are commercial entities and we do not comment on the financial situation of specific companies as it would not be appropriate.

"We prepare for a range of scenarios across our regulated industries – including water – as any responsible government would.”

The Conservative MPs' letter to Thames Water in full

Dear Mr Weston [Chris Weston, chief executive], 

We are writing on behalf of our constituents following the recent publication of your plan to tackle sewage overflows in Oxfordshire. 

We welcome the transparency provided by the Water UK National Storm Overflows Plan, but it shows that more must be done to urgently improve your unacceptable environmental record. 

We strongly welcome that 100 per cent of sewage overflows are now monitored in Oxfordshire and across the whole of England, which is thanks to the decisive action taken by this Government. 

It is crucial that these monitors are kept under regular maintenance so that our constituents can continue to transparently access data. 

The action the Government has taken including introducing new legally binding targets, unlimited fines, and requirements for water companies to invest £56 billion in environmental infrastructure improvements is clear evidence that the Government is committed to tackling this problem, but Thames Water now must deliver. 

While we welcome the over £800 million that Thames Water is investing into cutting sewage overflows by 84 per cent in Oxfordshire, it is very disappointing that this target will only be met by 2050. 

It is even more disappointing that there will only be a reduction of 22 per cent by 2030. 

Our constituents are rightly very angry about the volume of sewage going into our waters and we expect you to act with far greater urgency to stop sewage overflows. 

We would be grateful for a meeting to discuss this issue as soon as possible. 

Yours sincerely, 

David Johnston OBE MP, John Howell OBE MP, Robert Courts KC MP, Rt Hon Victoria Prentis KC MP.