Thames Water has apologised to MPs for causing “confusion” when it previously described a £500mn shareholder loan as equity.
The company, which provides water to around 25 per cent of the population in England, is struggling with £18.3bn of debt.
Sir Adrian Montague, the chair, said he was sorry if the management had caused “confusion” when it described the shareholder contribution as equity when it was actually a convertible loan charging 8 per cent.
But he told parliament’s environment select committee that he still stood by that phrasing.
“In July we described the shareholder contribution of £500mn as equity. That’s a description that has been fiercely challenged. We stand by what we said. If we were not clear enough in unpacking the different elements of that . . I’m sorry if we caused any confusion,” he said.