A water company co-founded by the treasurer of the Conservative party is in discussions to take a stake in Thames Water, which is looking to raise billions of pounds to avoid a potential renationalisation. Castle Water — which acquired Thames Water’s corporate customers from the utility in 2017 — is looking at contributing new equity to bolster the balance sheet of the UK’s largest water utility, according to four people familiar with the matter.
The monopoly is also seeking an increase to its bills of 53 per cent in real terms by 2030 to enable it to raise the £3bn of funding it needs just to keep running and deliver infrastructure improvements. Edwards co-founded Castle Water with its chief executive John Reynolds in 2014 to capitalise on the deregulation of the business water market, where companies other than the utilities were allowed to handle customer complaints, bills, meter readings and some operational issues.