Thames Water says it has secured a commitment for an additional £750m investment by shareholders, as the debt laden company races to avoid the possibility of being placed in temporary public ownership.

The country’s largest supplier used the publication of delayed annual accounts to announce further progress in its bid to raise cash to shore up its finances.

The water regulator told a committee of peers last week that Thames was looking for £1.5bn but would be likely to need more.

Sky News revealed last month how the government was drawing up contingency plans for the company’s collapse amid growing doubts about its ability to service a £14bn debt pile.

Thames Water has been locked in efforts to shore up its finances over recent months by tapping shareholders for more cash.

It was understood, on Saturday, that a commitment to provide new equity had been secured from a number of investors though the response to the plea for more cash was non-binding.

The request for fresh money, via an equity support letter, was believed to have been demanded by auditors as a condition of signing off the company’s accounts on a going concern basis.

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Thames is rushing to avoid the possibility of being placed into a special administration regime that would effectively take the company into temporary public ownership – as happened to energy provider Bulb in 2021.

Amid criticism of past dividend flows, its financial position has been worsened by rising interest rates to which many debt repayments are linked.

It is an industry-wide problem.

At the same time, firms are under pressure to bolster service performance following years of weak investment in infrastructure that has led to widespread anger over leaks and sewage dumps into rivers and the sea.

On Friday, Southern Water revealed it would not be paying dividends until at least 2025 following a further credit rating downgrade.