Thames Water customers face the prospect of a £230 jump in their annual bills to help secure its future, after a potential rescue deal collapsed.

Thames Water's senior creditors said there was a "short and closing window" for a market-led rescue of the water company after U.S. private equity firm KKR pulled out of a multi-billion pound funding plan on Tuesday.

The water company said the decision not to proceed with the equity raise created uncertainty around its plan to stay afloat, raising the prospect of nationalization.