Thames Water, the UK's largest water and wastewater company supplying around a quarter of the population, reported a pre-tax loss of £1.65 billion for the past year, a sharp decline from a £157 million profit the previous year. Its debt has escalated to £16.8 billion, raising concerns about its financial stability and prompting warnings from its chief executive that it may take over a decade to recover. The company is facing increased scrutiny from UK lawmakers amid rising sewage leaks and significant price hikes for consumers. Discussions about potential temporary nationalization have emerged as the utility struggles to manage its debt crisis. In response to the broader water sector's challenges, the UK government is set to implement a comprehensive reform of the industry, including scrapping the current regulator, Ofwat, and replacing it with a single, more powerful regulatory body. This overhaul follows a landmark 465-page report from the Independent Water Commission, which made 88 recommendations aimed at addressing the sector's failures, including polluted rivers, leaky pipes, and rising bills. The report also highlighted the need for tighter oversight of company ownership and criticized the light-touch regulatory approach previously adopted. Despite these reforms, the report does not advocate for public ownership or democratization of the water industry. The government has confirmed plans to proceed with these reforms, marking what officials describe as the biggest overhaul of water regulation in a generation. Meanwhile, the water sector continues to face criticism for environmental issues, including sewage dumping and water leaks, with companies paying substantial dividends despite high levels of debt and infrastructure challenges.