Thames Water is making a renewed effort to convince regulators to approve an increase in consumer bills of at least 40%, aiming to allocate more funds towards environmental initiatives.

The water company, burdened with significant debts, intends to allocate an additional £1.1bn between 2025 and 2030 for this purpose.

Earlier, the regulatory authority, Ofwat, had rejected Thames Water's initial proposal, casting doubt on the company's future. Speculation arose about potential government intervention due to the company's financial strain.

Initially, Thames Water had proposed an £18.6bn investment plan alongside a 40% bill increase (excluding inflation) over five years. Ofwat's dismissal of this proposal led shareholders at Thames' parent company, Kemble Water, to retract a planned cash infusion and default on debt interest payments.

Now, Thames Water is suggesting an extra £1.1bn investment in environmental projects, beyond its original plans. Additionally, it contemplates a further £1.9bn increase in investment, potentially raising customer bills by 44%.

Ofwat is expected to make a pivotal decision on May 23rd, with a preliminary determination on permissible charges for the upcoming year set for June 12th.

Despite the uncertainties, Thames Water's operating arm has assured its 16 million customers of its financial stability, ensuring the continuity of water and waste services until May of the following year.

Chris Weston, CEO of Thames Water, emphasized the alignment of their business plan with customer priorities, particularly focusing on environmental benefits. He reiterated the commitment to ongoing discussions with regulators and stakeholders. Photo by Kaihsu Tai, Wikimedia commons.