Image description: An aerial view of a sewage treatment works. Photo by Patrick Federi / Unsplash

Britain’s Southern Water has secured up to 1.2 billion pounds ($1.65 billion) of equity from a consortium led by Australia’s Macquarie Asset Management and agreed to refinancing terms with creditors to avert a debt crisis.

Southern Water, which serves 4.7 million people across southern England, said on that the added equity will help fund planned infrastructure upgrades over the coming five years.

Since acquiring a majority stake in 2021, Macquarie has been working to overhaul the water utility’s performance following years of operational and regulatory shortcomings, having already invested 1.65 billion pounds in equity since then.

The so-called ‘vampire kangaroo’ will initially inject £655million into the group, followed by a minimum £245million by December, which could grow to £545million. Over the 2025 to 2030 regulatory period, the business intends to spend £8.5billion on improving services, including £3.3billion towards environmental projects.

The plans come as part of a deal that will also see the debt owed to Southern Water’s holding company lenders slashed by more than half.

Southern water pleas with customers to restrict water use

According to the BBC, a renewed urgent plea has been issued to residents to reduce water usage, with South East Water reporting nearly 700 million litres of water was used in a single day.

The company has asked customers to restrict water usage for “essential purposes only” which are drinking, washing and cooking. Meanwhile, some customers have been asking the company to prioritise fixing water leaks.