Thames Water Returns Set Below Level Needed to Finance Plan (3)

Thames Water equity investors will get a return of 5.1% over the next five years, which may not be enough for the heavily indebted company as it scrambles to avoid running out of cash.

It’s at the lower end of the range requested by Thames, and investors will now need to decide if it’s enough to attract the billions of pounds Britain’s largest water utility says it needs to tackle chronic leaks and sewage spills — and avoid being plunged into temporary nationalization.

Water regulator Ofwat on Thursday set rates of return for the entire industry, seeking to end months ...