New Thames Water Plans Could See Bills Surge by 44%

Thames
Water
is
Britain’s
biggest
water
works,
with
16
million
customers
in
London
and
the
Thames
Valley
region.
It
said
its
new
business
plan
for
the
five
years
to
2030
would
see
spending
rise
to
£19.8
billion,
with
the
extra
being
used
for
environmental
projects.

This
increased
spend
would
see
bills
rise
largely
in
line
with
the
previous
plans
for
a
40%
rise
over
the
five
years.

But
it
added
that
the
possible
extra
£1.9
billion
investment
would
see
average
customer
bills
increase
by
another
£19
over
the
five
years
–
or
around
44%.

If
Ofwat
was
to
give
the
full
plans
the
go-ahead,
this
would
see
customer
bills
rise
to
£627
a
year
by
2030.

Thames
Water
chief
executive
Chris
Weston
said:
“our
business
plan
focuses
on
our
customers’
priorities.

“As
part
of
the
usual
ongoing
discussions
relating
to
(the
business
plan),
we’ve
now
updated
it
to
deliver
more
projects
that
will
benefit
the
environment.

“We
will
continue
to
discuss
this
with
our
regulators
and
stakeholders.”

Thames
Water
has
had
to
rethink
its
business
plan
in
a
bid
to
stave
off
collapse
as
it
crumbles
under
the
weight
of
£15
billion
of
debt.

Its
investors
have
refused
to
pump
in
the
cash
needed
to
plug
a
funding
gap
and
reports
suggest
the
government
is
working
on
plans
to
effectively
nationalise
the
water
giant.

This
would
see
the
taxpayer
foot
the
bill
for
its
mammoth
debts.

Thames
Water
originally
wanted
to
raise
customer
bills
by
40%
to
fund
an
investment
programme
worth
£18.7
billion
under
plans
published
in
October.

But
the
company
said
Ofwat
had
imposed
regulations
on
the
plan
which
made
it
“uninvestable”,
with
its
shareholders
pulling
a
GBP500
million
emergency
funding
package
that
was
due
to
be
paid
at
the
end
of
April.

The
company
had
£2.4
billion
cash
available
as
of
February,
enough
for
it
to
remain
solvent
until
next
year.

It
is
said
to
be
in
ongoing
discussions
with
its
existing
shareholders
–
which
include
the
Universities
Superannuation
Scheme,
China’s
sovereign
wealth
fund,
a
Canadian
pension
fund
and
the
BT
Pension
Scheme.

Ofwat
is
due
to
give
its
initial
decision
on
the
proposed
business
plan,
known
as
PR24,
on
June
12.

Thames
Water
is
reportedly
preparing
to
approach
lenders
to
fund
the
five-year
spending
plans,
which
means
it
could
take
out
a
new
loan.

As
well
as
being
saddled
with
huge
debts,
the
company
has
also
come
under
intense
scrutiny
after
missing
sewage
spill
and
leakage
targets.

It
said
the
updated
business
plans
come
after
it
discussed
the
original
business
plan
“extensively
with
regulators
and
key
stakeholders”.

Liberal
Democrat
Treasury
spokesperson
Sarah
Olney
said:
“it
would
be
an
absolute
disgrace
if
customers
are
forced
to
foot
the
bill
for
Thames
Water’s
shambolic
failings.

“Ofwat
cannot
allow
these
bill
hikes
to
go
ahead.”

She
said
the
Liberal
Democrats
will
be
tabling
a
Bill
in
Parliament
on
Monday,
which
would
immediately
put
Thames
Water
into
special
administration.

By
Holly
Williams,
PA
business
editor

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