Contingency plans being drawn up for Thames Water collapse

UK government and Ofwat holding discussions amid fears firm cannot survive because of huge debt pile

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Contingency plans for the collapse of Thames Water are being drawn up by the UK government and the industry watchdog amid fears that Britain's biggest water company cannot survive because of its huge debt pile.

Ministers and the water regulator Ofwat are holding discussions about the possibility of placing Thames Water into a special administration regime (SAR) that would take the company into temporary public ownership.