(Reuters) – Britain’s Thames Water is preparing for the possibility that it may be pushed into special administration following an appeal in a London court next week, Bloomberg News reported on Friday, citing people familiar with the matter.
While executives at the firm believe a temporary nationalisation of Britain’s largest water and sewage utility is unlikely, they are nevertheless developing contingency plans, the report added.
“The restructuring plan sanctioned by the High Court is the best way to resolve the issues facing Thames Water,” a company spokesperson told Reuters, adding that it believes that this way is better than any other alternative course.
Earlier in February, Thames Water lodged an appeal to Britain’s competition regulator in a bid to raise the prices it can charge customers for the next five years.
Thames is at the centre of a public backlash against the country’s privatised water industry, blamed for polluting rivers with sewage. The government wants Thames to avoid administration and is focusing its efforts on reforming the sector.
(Reporting by Rhea Rose Abraham and Chandni Shah in Bengaluru; Editing by Alan Barona)
