New proposals could result in increased water bills across the UK to finance a potential £10 billion bailout for Thames Water.
According to The Telegraph, the government may implement new legislation allowing it to levy a charge on all water companies if it takes over Thames Water, which is grappling with substantial financial difficulties.
These costs would likely be passed on to consumers, leading to higher water bills.
Ministers have indicated that such measures would only be used as a last resort if no buyer can be found to take on Thames Water’s debts.
The company, which is over £15 billion in debt, has warned it may only have sufficient funds to operate until the end of May next year.
In August, Thames Water announced it might need to raise customer bills by nearly 60% by 2030.
A Defra spokesman told Energy Live News: “This is highly sensationalist. We have no plans to raise bills resulting from the unlikely event of a Special Administration Regime and we do not expect customers to pay the price for water companies’ mismanagement.
“The new measures in the Water Bill will protect taxpayers. This Government will always act to protect customers and the public.”
