The creditors of Thames Water have set out plans on how they would deliver £20.5 billion of investment to turn around the troubled supplier’s performance as they look to secure a rescue of the firm.

The supplier’s main creditors – led by a team of 15 investors called the London & Valley Water consortium – have pledged to “fix the foundations” of Thames Water with the mammoth spending proposal put forward to regulator Ofwat.

They are promising an increased focus on improving Thames Water’s poor pollution performance and record on leaks, with targets to cut sewage spills by at least 135 a year.

Thames Water – the UK’s biggest water supplier with around 16 million customers – is on the brink of nationalisation as it struggles under a mountain of debts.

The creditors are looking to secure backing for their plans to avoid Thames Water being put into a temporary special administration regime (SAR), which would effectively wipe out their investments.

Their spending proposals would see them work within the £20.5 billion investment allowance set by Ofwat in its final determination on Thames Water spending and bill rises.

Household bills would not rise by more than the regulator has already approved over the next five years, the group stressed.

But it said the plans would need “billions of pounds of new funding” from the consortium.

It remains in talks over a rescue deal of the supplier that would see them pump in new cash, but ask for leniency in how it is regulated.

The creditors hope to put forward updated plans on a funding deal and debt overhaul for Thames Water within the next couple of weeks.

Mike McTighe, chairman designate of the London & Valley Water consortium, said: “Over the next 10 years the investment we will channel into Thames Water’s network will make it one of the biggest infrastructure projects in the country.

“Our core focus will be on improving performance for customers, maintaining the highest standards of drinking water, reducing pollution and overcoming the many other challenges Thames Water faces.

“This turnaround has the opportunity to transform essential services for 16 million customers, clean up our waterways and rebuild public trust.”

The creditors are the bondholders who now effectively own Thames Water after the High Court approved a financial restructuring earlier this year through a loan of up to £3 billion to ensure it can keep running until the summer of 2026.

The firms involved – which include US and UK investment firms such as Aberdeen, Elliott Management and BlackRock – submitted an initial financial plan in June to overhaul £17 billion of Thames Water’s debts, including investing another £3 billion in new equity and a further £2 billion of funding.

But they also asked for leniency on performance targets and compliance, warning that a “regulatory reset” was needed for the utility, or its performance would likely worsen.

The latest investment plans would see the group commit to spending £9.4 billion on sewage and water assets over the next five year, up 45 per cent on current levels.

Of this, £3.9 billion would be spent on upgrading the worst performing sewage treatment sites, £1.2 billion on helping deliver high-quality drinking water and £2.7 billion on stopping sewage spill incidents.

Longer term proposals would see 1,000km of water mains replaced over the coming decade, with £545 million targeted to replace around 370km by 2030.

Thames Water’s current management has previously said it would need over £24 billion of investment allowance for the next five years and to increase bills by more than Ofwat had agreed.

The government appointed insolvency specialists FTI Consulting last month to step up contingency planning in case the supplier collapses.

A possible rescue deal with US private equity giant KKR collapsed in May, but the government has stressed its preference is for a “market-based solution” rather than a costly temporary nationalisation.

High-caffeine energy drinks will be banned for under-16s in England to prevent harm to children’s health, the Government has said.

The plan will make it illegal to sell energy drinks containing more than 150mg of caffeine per litre to anyone under 16 across all retailers, including online, in shops, restaurants, cafes and vending machines.

Lower-caffeine soft drinks – such as Coca‑Cola, Coca‑Cola Zero, Diet Coke and Pepsi – are not affected, and neither are tea and coffee.

However, high-caffeine energy drinks such as Red Bull, Monster, Relentless and Prime would all breach the limit.

Major supermarkets including Tesco, Sainsbury’s, Waitrose, Morrisons and Asda have already stopped sales of the drinks to youngsters, but the Department of Health said research suggests some smaller convenience stores are still selling them to children.

According to ministers, a ban could prevent obesity in up to 40,000 children and will help prevent issues such as disrupted sleep, increased anxiety and lack of concentration, as well as poorer school results.

Around 100,000 children are thought to consume at least one high-caffeine energy drink every day.

Health and Social Care Secretary Wes Streeting said: “How can we expect children to do well at school if they have the equivalent of a double espresso in their system on a daily basis?

“Energy drinks might seem harmless, but the sleep, concentration and wellbeing of today’s kids are all being impacted while high sugar versions damage their teeth and contribute to obesity.

“As part of our plan for change and shift from treatment to prevention, we’re acting on the concerns of parents and teachers and tackling the root causes of poor health and educational attainment head on.

“By preventing shops from selling these drinks to kids, we’re helping build the foundations for healthier and happier generations to come.”

A newly-launched consultation will now run for 12 weeks to gather evidence from experts in health and education as well as retailers, manufacturers, local enforcement leaders and the public.

Drinks containing more than 150mg of caffeine per litre must already carry warning labels stating they are not recommended for children.

Gavin Partington, director general of the British Soft Drinks Association, said firms do not market or promote the drinks to under-16s.

He added: “Our members have led the way in self-regulation through our long-standing energy drinks code of practice.

“Our members do not market or promote the sale of energy drinks to under-16s and label all high-caffeine beverages as ‘not recommended for children’, in line with and in the spirit of this code.

“As with all Government policy, it’s essential that any forthcoming regulation is based on a rigorous assessment of the evidence that’s available.”

According to the Department of Health, up to one in three children aged 13 to 16, and nearly a quarter of children aged 11 to 12, consume one or more high-caffeine energy drink every week.

Education Secretary Bridget Phillipson said: “This Government inherited a scourge of poor classroom behaviour that undermines the learning of too many children – partly driven by the harmful effects of caffeine-loaded drinks – and today’s announcement is another step forward in addressing that legacy.”

Professor Steve Turner, president of the Royal College of Paediatrics and Child Health, said: “Paediatricians are very clear that children or teenagers do not need energy drinks.

“Young people get their energy from sleep, a healthy balanced diet, regular exercise and meaningful connection with family and friends.

“There’s no evidence that caffeine or other stimulants in these products offer any nutritional or developmental benefit, in fact growing research points to serious risks for behaviour and mental health.

“Banning the sale of these products to under-16s is the next logical step in making the diet of our nation’s children more healthy.”

Carrera, from the youth-led group Bite Back, which campaigns for changes to the way unhealthy foods are made, marketed and sold, said: “Energy drinks have become the social currency of the playground – cheap, brightly packaged, and easier to buy than water.

“They’re aggressively marketed to us, especially online, despite serious health risks.

“We feel pressured to drink them, especially during exam season, when stress is high and healthier options are hard to find.

“This ban is a step in the right direction, but bold action on marketing and access must follow.”

Amelia Lake, professor of public health nutrition at Teesside University, said: “Our research has shown the significant mental and physical health consequences of children drinking energy drinks.

“We have reviewed evidence from around the world and have shown that these drinks have no place in the diets of children.”

Barbara Crowther, of the Children’s Food Campaign at Sustain, an alliance of food, farming and health organisations, said the drinks were “branded and marketed to appeal to young people through sports and influencers, and far too easily purchased by children in shops, cafes and vending machines”.

Professor Tracy Daszkiewicz, president of the Faculty of Public Health, said: “Mounting evidence shows us that high-caffeine energy drinks are damaging the health of children across the UK, particularly those from deprived communities who are already at higher risk of obesity and other health issues.

“We welcome this public health intervention to limit access to these drinks and help support the physical and mental wellbeing of our young people.”

James Lowman, chief executive of the Association of Convenience Stores, said: “The majority of convenience stores already have a voluntary age restriction in place on energy drinks, and will welcome the clarity of regulation on this issue.

“Our members have a long-standing track record of enforcing age restricted sales on different products, but it is essential that the Government effectively communicates the details of the ban to consumers to avoid the risk of confrontation in stores.”