THAMES WATER’S impending collapse is the ultimate result of privatising an essential monopoly like water, campaigners said today..

The government is reportedly approaching potential administrators to step in if the troubled utility falls into bankruptcy.

The water giant is struggling under a debt of £19 billion and has warned that it will run out of cash in March unless the High Court signs off a £3bn loan at a hearing next month.

Environment Secretary Steve Reed ruled out nationalisation in October.

But officials have told the Financial Times that the government has spoken to consultancies including Teneo and Interpath to potentially run a special administration regime (SAR) — a temporary measure designed to keep services running.

The measure could be a sign that ministers are bracing themselves for the renationalisation of the company as the court could block the loan agreement due to a high interest rate of 9.75 per cent alongside fees and incentives of the current Thames Water management.

Last month, regulator Ofwat fined the company £18.2 million for paying £158.3m in dividends to shareholders which it said were not justified.

We Own It lead campaigner Matthew Topham said: “Thames Water’s impending collapse is the ultimate result of privatising an essential monopoly like water.

“Everyone from UN human rights experts to local anti-sewage groups have been calling for a move to local, democratic public ownership of our waterways.

“Special administration must be used not only to stabilise Thames but to bring it up to the safe and secure international standard.

“The Environment Secretary must heed the lessons from [former PM Tony] Blair’s transformation of Network Rail through the process in 2001 — protecting consumers and taxpayers by letting creditors and shareholders take responsibility for their failures.”

Water company Severn Trent said today that it also plans to hand shareholders a higher dividend for the next years as its financial performance “remains on track.”

It follows Ofwat’s recent approval of a 47 per cent rise in customer bills over the next five years.

Severn Trent said the rise will help its efforts to halve spills by 2030, reduce pollution by 30 per cent and reduce leakage by 16 per cent.