Thames Water is facing a severe financial crisis, with over £15 billion in debt and only enough cash to operate until May 2025.

The company's financial troubles have been compounded by sewage scandals and fines, affecting over 16 million customers in London and the Thames Valley.

To address this crisis, Thames Water has proposed a staggering 59% increase in customer bills by 2030, raising average yearly charges to £666.50.

This proposal is significantly higher than Ofwat's earlier suggestion of a 23% rise and Thames Water's previous plan for a 44% increase submitted earlier this year.

The request for higher bills is driven by forecasts of reduced customer numbers and the need for increased spending on infrastructure improvements.

Thames Water's CEO, Chris Weston, emphasized that the additional funds would be invested in infrastructure and service improvements, particularly in light of challenges like climate change and population growth.

However, the yield on Thames' bonds has increased, indicating heightened investor risk amid tensions with Ofwat regarding these proposed bill increases.

Thames Water argues that Ofwat's proposed cap on bill increases is unsustainable and threatens the company's ability to invest in necessary improvements.

Consumer advocates have expressed concerns about affordability and fairness for Thames Water's customers, especially in light of ongoing service failures.

The government is closely monitoring the situation, reiterating its commitment to improving Britain's waterways and enforcing stricter regulations on polluting companies.

As the regulator Ofwat reviews responses from stakeholders, a final decision on the proposed bill increases is expected in December.

The scrutiny of Thames Water's management, particularly by Macquarie, has intensified as the company seeks to navigate its financial difficulties.