Thames Water is now even closer to temporary nationalisation after the government objected to a £10bn rescue proposal from its creditors. Ofwat, the UK water regulator, is also feeling the heat, after Environment Secretary Emma Reynolds penned a letter to the watchdog criticising the lenders’ offering. She warns it would fail both the environment and customers. ‘A holiday from the rules’ Thames Water has teetered on the edge of ruin for several years, at this point. It’s currently buried under £20bn in debt, and has faced record fines for dumping untreated sewage into England’s waterways. The company will run out of…