22 April 2008
A number of utility firms are facing a tough time during the credit crunch, it has been claimed, including Thames Water.
The specialist bank Reynolds Partners stated that the water provider already had debts of £6.8 billion, something that may be added to with other outgoings, reports Reuters.
But in response, a spokeswoman at Thames Water suggested that the business is in a good position should costs rise, because of "cash reserves" and "insurance cover".
Chief Executive at Reynolds John Reynolds had remarked that there is no leeway should any extra payments come into account this year.
"Utility companies have built up massive debts, leaving little scope for further borrowing if they are hit by a financial shock resulting from, for example, paying for repairs," he asserted.
He added that future problems may eventually impact on consumers and their bills.
Last week, the Socialist Party noted that advertised water price increases in recent times have been inaccurate.
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