Thames Water returns to profit thanks to soaring household bills

Financial Performance - Thames Water reported a profit of £414 million for the six months ending in September, a significant turnaround from a loss of £149 million during the same period last year [1] - Revenues increased by 42% to £1.9 billion, driven by regulatory approval for substantial increases in utility bills [2] Debt and Financial Challenges - The company's debt rose to £17.6 billion, with a 5% increase noted over the six-month period [2][6] - Thames Water has nearly maxed out a £1.5 billion loan facility from creditors, indicating ongoing financial strain [2] Customer Impact - The average customer bill increased from £436 to £588, leading to a rise in customer complaints [3] - The CEO acknowledged that higher customer bills have funded increased capital investment, which rose by 22% to nearly £1.3 billion [4] Operational Improvements - The company has made progress in operational transformation, achieving a 20% reduction in pollution and maintaining steady leakage performance despite challenging weather conditions [8] - Investment has been directed towards fixing leaks, pollution control, and improving water quality [6][4] Future Outlook - Thames Water is working on a long-term transformation program expected to take at least a decade to complete [7] - Senior creditors are exploring a potential rescue deal to prevent the company from entering a taxpayer-backed special administration regime [5]