Thames Water has reportedly asked to hike consumer bills by 56% over the next five years in its bid for survival.
London’s crisis-struck water provider is said to have proposed the move under new plans submitted to regulator Ofwat, according to The Telegraph.
Coinciding plans have also reportedly been drawn up for a government takeover of the water supplier.
This would see Thames’ debt pile added to the public purse, according to the Guardian.
Thames would be placed into government-handled administration under the move, effectively being nationalised.
Thames Water holds over £15 billion in debt, with this stretching to £18 billion when including other businesses across its complicated structure.
The company previously asked the regulator to hike bills by 40%, as the debt-ridden supplier looked to stay afloat.
Thames emerged as being on the verge of collapse last year, after costs of servicing its debt pile have grown recently.
Ofwat had told Thames that a viable plan of action was needed in the coming weeks before the regulator sets out draft determinations for the industry in June.
Bondholders could also see the value of their loans cut by up to 40% under plans, as reported by the Guardian.
Midweek reports also said Thames was mulling adding to its debt pile under survival attempts.
Parent Kemble Water has already defaulted on a £400 million loan, with bondholders having also been told it will miss a deadline to pay £190 million this month.