FTI Consulting has been brought in as an administrator in the event Thames fails to secure funding from lenders.
Contingency plans could see Britain’s biggest water firm placed into a special administration regime (SAR), meaning it would be put into an insolvency process.
Environment Secretary Steve Reed signed off the appointment, which would still need to be approved in court, according to Sky News which first reported on the move.
A spokeswoman for the Department for Environment, Food & Rural Affairs (Defra) said: “The Government will always act in the national interest on these issues.
“The company remains financially stable, but we have stepped up our preparations and stand ready for all eventualities, including applying…