Tue, 13 May 2025

Tue, 13 May 2025 Please don't fine us, Thames Water asks regulator

Water firm boss tells MPs company's survival depends on special treatment from the industry regulator.

* Thames Water's boss Chris Weston said the company's survival as a private entity relies on Ofwat being lenient over fines and penalties.
* If money leaks out of the business, it could lead to nationalisation, which would hinder the company's ability to improve performance targets on pollution.
* Thames Water is currently in talks with Ofwat to persuade the regulator to give some leeway on fines, but Ofwat has told the BBC there is a "high bar" for flexibility within its regulations.
* The company faces estimated fines of up to £900m over the next five years for leaks and sewage spills, which would hinder efforts to attract new investment.
* Thames Water is in discussions with private investment group KKR about a cash injection of up to £5bn, but this deal is dependent on lenders accepting a discount on their debt.
* The company's chairman Sir Adrian Montague has defended the decision to press ahead with an additional high-interest loan of £3bn earlier this year.
* Some have questioned why Thames Water was given special treatment after getting into financial distress of its own making, but others argue that it is a "special case" and deserves a chance to turn things around.
  >>