Thames Water problems today: UK water firm says it's 'sorry' as households in Croydon with 'low pressure' or 'no water' due to burst

Thames Water has issued an apology to its customers in Croydon, London, as households have woken up to either no water or low water pressure. The UK water firm says this is due to a burst.

It posted on its website this morning: “We’re sorry if your tap water isn’t running at the moment. We’re aware of a burst In CR0.

“Our team are enroute to the area to locate the cause of the issue. While this is happening, you may have either low water pressure or no water. We know how disruptive it is if you lose your water supply, so we’ll work hard to get things back to normal as soon as we can.

“If you or someone you know needs a little extra support, our free Priority Services Register can help us to understand your situation so we can take it into account as best we can. We’ll provide another update by 07:15. Thank you for your patience while we work to resolve this.”

The postcodes affected are: CR0, CR2, CR4, CR7, CR8, CR9, SM6 and SW16. In an update the firm said: “We're on site and are investigating a potential burst water main. Our teams are working hard to cover as many ground as possible to locate this.”

Another update is due to be given at 10am. It comes as the struggling water company is edging closer to a multibillion pound rescue deal with its lenders that would keep the ailing utility out of temporary public ownership.

Sky News reported that it learnt that a group of creditors holding £13bn of Thames Water's total debt mountain of £20bn is aiming to sign an in-principle agreement with Ofwat and the company by the middle of next month. Under the agreement being discussed, lenders would take a haircut on the Class A debt they are owed of up to 30%, an increase from the 25% disclosed in an announcement in October, according to one industry source.

In total, more than £13bn of existing value - up from £12.5bn - is expected to be written off when a final deal is put to the participating investors, which include Assured Guaranty, Invesco, Elliott Management, Silver Point Capital and Farallon Capital Management. In exchange, they would receive a minimum of 10% of the recapitalised company's equity.

A planned new equity injection of £3.15bn is also likely to be increased if an agreement is reached, the industry insider said. Last year, Thames Water's creditors said they would commit £3bn of emergency funding to keep Thames Water afloat.