Campaigners are calling for Thames Water to abandon its plans for a giant new reservoir near Abingdon after it emerged the company could go bankrupt.
The company is currently consulting residents on plans to build a new build a new 150 billion litre reservoir south west of the town.
Last week it emerged that the company, which has debts of about £15bn, could run out of money by the end of next May.
READ MORE: Thames Water could go bankrupt
The firm said it is still looking for new funds needed to maintain and update its infrastructure, after investors pulled the plug on £500m of emergency cash earlier this year.
Campaigners opposed to the reservoir plans say the company's financial position should be taken into account when considering if it is best placed to take the reservoir plans forward.
Derek Stork, spokesman for GARD (Group Against Reservoir Development), said: "Our view is that Thames Water will not be allowed to build this reservoir (water regulator Ofwat has already confirmed this) because of their parlous state.
(Image: Thames Water) "We are opposed to a reservoir in any case, as it is neither needed at this scale nor the most secure way of providing the water needed - fixing leaks and transferring water from the west are both much cheaper and more secure."
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He added: "Regarding Ofwat’s plan that some consortium is formed to build it, we would say costs are already going up - at present the full capital cost of the reservoir is £2.7bn and climbing.
"Thames Water have done none of the necessary safety engineering design, and haven’t even found out enough about the basic qualities and properties of the soil - something essential to make a proper design.
"Once a new organisation is awarded a contract, they will insist on a full design review, and a full geological and hydrological survey.
"This will inevitably lead to a major inflation in the cost of the reservoir, a hike which will be passed on to customers. There will also be more delays, so the reservoir couldn’t possibly be ready by 2040."
Vale of White Horse District Council has pointed out that the planned reservoir is now even bigger than originally planned - at around 6.5 square kilometres it is almost as big as Gatwick Airport.
The local authority has reaffirmed its objections to the reservoir in a formal letter to Thames Water, after the water company submitted its revised Draft Water Resources Management Plan to the government.
The council argues that the plans fail to fully consider the long-term impacts to the local community and the environment, both during a decade of construction and the irreparable damage to the countryside.
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Any reservoir would also come at the expense of significant carbon emissions, which the council argues would impact the district’s ability to become carbon neutral by 2045.
(Image: Oxford Mail) Bethia Thomas, Leader of Vale of White Horse District Council, said: “With public confidence in Thames Water at rock bottom – and the further news this week on the company’s significant financial challenges – it seems remarkable to me that it remains fixated on pushing ahead with this environmentally disastrous plan without properly exploring much more sensible and effective options.
"We remain opposed to these proposals and want to encourage residents to view the plans and give their feedback to Thames Water as well."
Ofwat has allowed Thames Water to increase average household water bills by £99 over a five-year period, a 23% increase. This includes an average rise in water bills of £32 between 2024-2025 and 2025-26.
Oxford West and Abingdon MP Layla Moran said she was pleased Ofwat did not allow Thames Water’s proposed increase to go ahead "wholescale".
Thames Water's public consultation on the proposed reservoir runs until August 28 and available here: https://thames-wrmp.co.uk/sesro
About 150 people responded in the first three weeks and Leonie Dubois, the company's head of engagement, said: "We’re absolutely delighted with the level of response we’ve already received."
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Andy is the Trade and Tourism reporter for the Oxford Mail and you can sign up to his newsletters for free here.
He joined the team more than 20 years ago and he covers community news across Oxfordshire.
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