London’s water supply on ‘knife-edge’ – Guardian

Britain’s biggest water provider has £23 billion ($29 billion) of assets in urgent need of repair, The Guardian has reported, claiming that the supply of water to London and other parts of the UK is on a “knife-edge.” 

The failure of Thames Water's management to address safety concerns and much-needed upgrades to its obsolete IT systems have left operations on the brink of collapse, an investigation into the company by the Guardian has claimed.

The company’s critical infrastructure relies on software dating back to the 1980s, sparking concerns about water supply for its 16 million customers in London and other counties, the newspaper claimed.

“Operations have been hollowed out and cut to the bone,” a senior source at the company told The Guardian. “We’re putting the public at risk by failing to invest in the most basic needs.”

On top of this, the company has piled up a £15 billion ($18 billion) debt and has reportedly said it cannot repay some of its lenders, which exacerbates its inability to respond to urgent maintenance needs.

Thames Water had reportedly been warned for years about its deteriorated reservoirs and pipes. Employees have described a desperate struggle to keep the aging systems operational, often resorting to makeshift repairs and salvaging parts from other outdated machines.

However, these issues have gone largely ignored both by management and the regulatory bodies overseeing the company, the Guardian claims.

A Thames Water spokesman maintained that “the wellbeing and safety of our colleagues and customers is our highest priority,” adding that the company supplies “2.6 billion liters of water every day, rated among the highest quality of drinking water anywhere in the world.”

Thames Water is now in a worse financial state than previously perceived, the Guardian claims, adding that the company is facing urgent repairs which will cost up to £23 billion, alongside operational challenges preventing it from ensuring the reliable delivery of clean water.

A spokesperson for the UK water regulator Ofwat said the investigation had raised “serious allegations” about Thames Water and pledged to “take action if there is evidence of breach of the company’s obligations.”

“It is of course essential that all water companies provide a safe and reliable water supply,” Ofwat said.

The regulator added that Thames Water had made a request for a “substantial increase in expenditure, including to address issues of asset health” noting that it is reviewing the request with the final decision on funding to be announced in December.