Scarsella is currently the CEO of UK Power Networks, before which he headed Northern Gas Networks, according to the electric utility's website.

"The Board of Thames Water, led by Ian Marchant, has been conducting a thorough search for a CEO and has shortlisted a number of high-quality individuals," a Thames Water spokeswoman said in a statement. She declined to comment on the Sky News report.

In May, Steve Robertson stepped down as Thames Water's chief executive and the company appointed Ian Marchant as executive chairman while it looked for a new CEO.

(Reporting by Akshay Balan in Bengaluru; editing by Clelia Oziel)