Thames Water bounces back to profitability with rising customer bills, but mounting debt and complaints continue to trouble the utility
Thames Water has posted a £414 million profit for the six months to September 2025, marking a sharp recovery from a loss of £149 million in the same period last year. This impressive turnaround comes despite the utility giant’s debt continuing to balloon, now standing at a staggering £17.6 billion.
The company’s financial recovery has largely been driven by a significant increase in household water bills, with revenues rising by 42% to £1.9 billion. This rise in income comes after the water regulator, Ofwat, approved a controversial price hike, allowing Thames Water to increase average customer bills from £436 to £588.
However, the price hike has not come without its challenges. The company warned that the increase in bills had led to a rise in customer complaints, as many households now face higher costs for essential water services. Thames Water’s CEO, Chris Weston, acknowledged that the price rise had resulted in a “rise in customer complaints,” adding that while the financial performance had improved, it had also led to frustrations among customers.
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Weston, however, defended the price hikes, noting that the increased revenues had enabled Thames Water to ramp up investment in vital infrastructure improvements. The company has increased its capital investment by 22%, spending nearly £1.3 billion to fix leaks, tackle pollution, and improve water quality. These efforts have seen a 20% reduction in pollution and steady performance in leak management, even during the dry summer months.
Despite these improvements, Thames Water’s debt continues to grow, with the company recently maxing out a £1.5 billion loan facility from creditors. As the company struggles to manage its finances, a group of senior creditors is exploring a potential rescue deal to avoid the company being nationalised and entering a taxpayer-backed administration scheme.
Weston highlighted that the company is committed to transforming its operations, with plans to address the infrastructure challenges facing the utility over the next decade. He emphasized that the ongoing investment would help restore Thames Water’s infrastructure and operations, and he reiterated that the company was working closely with stakeholders to secure a long-term solution that would benefit both customers and the environment.
However, as Thames Water navigates its financial struggles, the pressure remains high. With a continued reliance on debt and mounting public dissatisfaction due to rising bills, the utility faces a challenging path ahead as it tries to balance profitability with customer satisfaction.
