Fury as Thames Water calls for 40% higher bills and lower fines to stave off its collapse
THAMES Water will need to find extra cash itself to avoid a taxpayer bailout, its regulator has said.
The company, struggling under an almost £15billion debt pile, reportedly lobbied to raise customer bills by 40% and face lower fines.
Our largest water firm hopes to agree a deal with regulator Ofwat and the Government to avoid the bailout.
But singer and clean rivers campaigner Feargal Sharkey said: “No to bill increase, no to bailout. If it goes bankrupt, it goes bankrupt.”
The campaign group Surfers Against Sewage said: “It’s outrageous to ask customers to foot the bill when their track record shows they cannot use their money wisely.
“This is symptomatic of broken water system that needs an urgent review.” And Doug Parr, from Greenpeace, added: “After years of failure both ecologically and economically, Thames Water effectively demands greater immunity from prosecution and more taxpayer money.” Ofwat said it would not comment directly on the reports but added: “Thames Water needs to continue to deliver on its turnaround plan to improve its operational and environmental performance. “It is for the company to secure shareholder backing to improve its financial resilience.”
Thames Water has been lobbying to hike bills and keep paying out dividends to shareholders, according to a report. The average yearly water and sewerage bill is already set to rise by 6% in England and Wales, going up £27 to £473, said trade body Water UK.
The largest investor in Thames Water is the Canadian pension fund, Omers, with 31.8%, followed by the Universities Superannuation Scheme, a pension fund for UK academics, with 19.7%. Others include sovereign wealth funds in China and Abu Dhabi.
The Financial Times reported shareholders would inject £3.25billion if they could strike a deal with Ofwat.
The Government has previously said it was ready to take over Thames Water in the event of a collapse.
But one senior government figure said: “The collapse of Thames is the last thing we want.”
Pollution
A government spokesman would not comment on the firm’s financial situation but said: “We prepare for a range of scenarios across regulated industries – including water – as any responsible government would.”
Thames Water’s profits fell 54% in the first six months of 2023 while customer complaints rose 13%.
Campaigners have blasted its record on pollution and leaks. The company declined to comment.