Emergency planning amid fears Watford's sewer company may collapse

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It comes after Thames Water chief executive Sarah Bentley stepped down with immediate effect on Tuesday amid mounting worries over the financial stability of the firm.

“We prepare for a range of scenarios across our regulated industries – including water – as any responsible government would. The UK’s biggest water supplier said today that it needs “further equity funding” on top of the half a billion pounds it raised from shareholders in March. Thames Water’s owners last year invested £500 million in the firm – the first injection of equity into the group since privatisation.

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