Thames Water to Challenge Regulator’s Decision, Seeking Higher Bill Increases
Thames Water has announced plans to appeal to the UK’s competition regulator to raise customer bills even higher than previously approved, a move likely to spark political and public backlash.
The company, which supplies water to 16 million people in London and southeast England, confirmed that its board had unanimously decided to appeal to the Competition and Markets Authority (CMA).
Water bills in England and Wales are set to rise by an average of 36% over the next five years, with industry regulator Ofwat granting Thames Water permission for a 35% increase. However, the company had initially sought a much steeper 59% hike.
The appeal comes as Thames Water faces mounting financial troubles. The company is awaiting a court ruling on a critical £3 billion debt restructuring deal, which would allow existing creditors to add to its current £19 billion debt burden. A decision could come as soon as today, though it is more likely early next week.
Thames Water Warns of Collapse Without Urgent Funding
Thames Water has warned that it will face collapse on 24 March if it fails to secure additional funding.
In a statement to the markets on Friday morning, the company’s board asserted that the final regulatory decision for the 2025-2030 period fails to provide adequate support for the necessary investments and improvements required to serve its customers, communities, and the environment over the next five years.
Meanwhile, the company is under investigation by Ofwat, the water regulator for England and Wales, over delays to its planned environmental improvement projects.
Mike Keil, chief executive of the Consumer Council for Water (CCW), said:
Customers of Thames Water are already facing steep bill rises and they will be incensed the company now has the temerity to pursue an even larger increase. This is a company which has a poor track record on service delivery and customer complaints, so people will rightly question why it should be trusted with even more of bill-payers’ money.
People want investment to improve services but they also expect value for money and to be treated fairly. CCW will do everything in its power to ensure the views and concerns of customers are heard loudly and clearly during this appeal.
