The supply of water to London and other parts of the UK is on a “knife-edge” as Britain’s biggest water provider has £23 billion ($29 billion) of assets in urgent need of repair, according to The Guardian.

Thames Water operations are on the brink of collapse following its management’s failures to address safety concerns and much-needed upgrades to its obsolete IT systems, the outlet wrote this week.

The company’s critical infrastructure still relies on software dating back to the 1980s, sparking concerns about water supply for its 16 million customers in London and other counties, the newspaper claimed.

The report said the company had received warnings about its deteriorated reservoirs and pipes for years. Employees described a desperate struggle to keep the aging systems operational, often resorting to makeshift repairs and salvaging parts from other outdated machines. However, these issues have reportedly gone largely ignored both by management and the regulatory bodies overseeing the company.

Meanwhile, a spokesperson for Thames Water maintained that “the wellbeing and safety of our colleagues and customers is our highest priority,” adding that the company supplies “2.6 billion liters of water every day, rated among the highest quality of drinking water anywhere in the world.”

Thames Water is now in a worse financial state than previously perceived, the report said, adding that the company is facing urgent repairs amounting to £23 billion, alongside operational challenges preventing it from ensuring the reliable delivery of clean water.

“Operations have been hollowed out and cut to the bone,” a senior source at the company told The Guardian. “We’re putting the public at risk by failing to invest in the most basic needs.”

On top of this, the company has piled up a £15 billion ($18 billion) debt and has reportedly said it cannot repay some of its lenders, which exacerbates its inability to respond to urgent maintenance needs.

A spokesperson for the UK water regulator Ofwat said the investigation had raised “serious allegations” about Thames Water and pledged to “take action if there is evidence of breach of the company’s obligations.”

“It is of course essential that all water companies provide a safe and reliable water supply,” Ofwat said.

The regulator added that Thames Water had made a request for a “substantial increase in expenditure, including to address issues of asset health” noting that it is reviewing the request with the final decision on funding to be announced in December.

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