Why is Thames Water in so much trouble?

Thames Water's lenders have submitted a new rescue plan to save the firm, but how did it end up in this state?

Government ministers have raised serious concerns about a proposed £10 billion rescue package for Thames Water, questioning whether the deal delivers sufficient benefits for customers or the environment. Environment Secretary Emma Reynolds has reportedly written to the water regulator Ofwat, expressing doubts about the proposal, arguing that it fails to adequately safeguard consumer interests and could result in weaker performance standards and delays to essential infrastructure upgrades.