Fears over the financial health of Thames Water have brought other suppliers into the eye of the storm over their debt mountains. In December, industry regulator Ofwat flagged five water suppliers whose financial resilience it was most worried about.
As well as Thames Water, it highlighted Portsmouth Water, Yorkshire Water, Southern Water and SES Water as its "highest priority for engagement". Scrutiny of the industry intensified this week after reports that ministers are working on a contingency plan to prevent debt-laden Thames Water from going under.
The company is battling to finance the £14billion of debt on its books following interest rate rises. Debt has been growing across the sector, largely because of high inflation on index-linked debt - meaning companies owe more money when economic conditions worsen.
