The under-fire firm, which manages wastewater for Watford and most of Hertfordshire, has failed to tackle safety concerns or upgrade essential IT systems, according to The Guardian.
Serving 16 million customers across London and the south-east, the firm is in £15bn of dept, with senior sources telling The Guardian that operations have been “hollowed out and cut to the bone”, admitting the company is “putting the public at risk”.
Other allegations included a culture of intimidation around costs, key data being managed on “obsolete software” that dates back to 1989 and a weakening of key explosive infrastructure.
Responding to the claims, a Thames Water spokesperson said: “The wellbeing and safety of our colleagues and customers is our highest priority.
“We supply 2.6bn litres of water every day, rated among the highest quality of drinking water anywhere in the world.”
The spokesperson added: “We take a rigorous approach to financial discipline throughout the company in order to operate within budget, as any business in turnaround would be expected to do.
“We’ve been very open about the ‘asset deficit’ we face, and the challenges we will have meeting future demand if it’s not addressed.”
In Watford, the company has repeatedly come under fire for the dumping of raw sewage.
Earlier this year, it was found that 800 hours of waste was pumped into the River Chess for a month straight.
Thames Water admitted that the discharges were “unacceptable” and vowed that protecting the health of rivers was a “key focus” for the company.
In August, regulator Ofwat proposed a fine of £104m for the firm over the dumping, with Thames Water promising to cooperate fully with the investigation.
In August, the company was hit with a further £56.8 million fine after failing to hit key targets relating to pollution, leaks and supply interruption.
However, a spokesperson flagged how it has between three and four times more customers than other companies so penalty rates are proportionately higher.
Responding to The Guardian’s most recent report, an Ofwat spokesperson said: “We have been pushing Thames Water to make significant improvements in its operational performance and financial resilience for some time.
“It is of course essential that all water companies provide a safe and reliable water supply.”