Thames Water seeks to hammer customers with £228 annual bill increase

28th Aug 2024 14:05

(Sharecast News) - Under fire utility Thames Water - which has paid out billions in dividends to shareholders and faced criticism over leaks and pollution - wants to hit customers with a £228 annual rise in their bills.

The company on Wednesday said submitted its request to industry regulator Ofwat to hike bills beyond a current cap as it felt it could not deliver infrastructure improvements under the current regime. Long suffering customers would see their bills rise to around £650 a year.

Ofwat last month ruled that bills could go up but limited these to an average of £94 over the next five years.

"On the basis of the draft determination given to us by Ofwat, both our own and independent analysis shows that our plan would be neither financeable nor investible and therefore not deliverable. It would also prevent the turnaround and recovery of the company," said Thame Water chief executive Chris Weston.

Water firms across the sector have faced a barrage of criticism over sewage discharges into rivers and seas along with never-ending leaks, with critics accusing them of neglecting investment in favour of shareholder dividends.

Thames Water is labouring under a £15.2bn debt pile and only has enough cash to fund its operations until the end of May next year.

However, industry claims that the bill cap water bills would harm efforts to stop sewage leaks were described as "absolute balderdash" by the GMB union.

"Water companies have had the money, failed to invest in plugging leaks and preventing sewage spills and now want more money to do what they failed to do," said national officer Gary Carter.

"It's absolute balderdash and Ofwat must say enough is enough. If they want investment, water companies must be fundamentally reformed. They have failed bill payers and their employees who have faced increased assaults and abuse because of the tarnished reputations of their employers."

"It's time the shareholders paid for the investment the water companies promised but hasn't delivered. "

Reporting by Frank Prenesti for Sharecast.com