Thames Water has agreed a payment plan with Ofwat to cover £123m in fines, as the debt-laden utility scrambles to secure funding and avert temporary nationalisation.
The company, which supplies 16 million customers across London and the South East, faces record penalties including a £104m fine for environmental breaches linked to sewage spills and a further £18.2m sanction for breaching dividend rules — the first of its kind in the sector.
Originally due by 20 August, the payments will now be staggered. Thames will make an initial £24.5m instalment, or 20% of the total, by the end of September, with the balance to follow under the regulator-approved plan. Ofwat stressed the fines must be paid by the company and its investors, not passed on to customers.
The move comes as the government readies contingency measures, having appointed insolvency advisers FTI Consulting to prepare for a potential special administration regime (SAR) should the utility collapse.
