Struggling Thames Water has returned to profit but it comes on the back of rocketing customer bills, with complaint levels up nearly 75%

Troubled Thames Water has warned a rescue deal is taking “longer than expected” amid ongoing fears for its future.

Britain’s biggest water supplier is battling to avoid being nationalised and is downing under a debt mountain that has now risen to almost £20billion, latest figures have revealed.

Bosses are trying to negotiate a takeover of the firm by its lenders, which include US hedge funds.

In latest results, Thames admitted: “Discussions are taking longer than expected but this is a complex situation and the current phase of the restructuring plan will likely take a number of months to conclude.”

The company, which supplies 16 million customers,

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