Why Thames Water Is at Risk of Nationalization as Debt Crisis Drags On

Britain’s water industry is bracing for the biggest overhaul since privatization in 1989 amid a scandal over systematic sewage spills and chronic pipe leaks. Customers are set to shoulder the cost of fixing the problems through the largest ever bill increases for households and businesses.

The crisis follows decades of poor regulatory oversight that allowed water company owners to pay themselves billions of pounds in dividends instead of using the money to maintain the infrastructure. Things are so bad that Thames Water Utilities Ltd., which serves a quarter of England, is in talks to restructure its heavy debts and find a new owner to avoid falling into temporary state ownership.