Ofwat comment on Thames Water announcement
Ofwat’s Chair, Jonson Cox, commented on this morning’s news that Thames Water’s shareholders have agreed to invest an additional £500m of equity into the business, with the prospect of a further £1bn of equity to follow subject to performance milestones :
“We have been working hard to get all water companies to ensure they have robust financial resilience so they have the stability needed to fulfil their current and long-term obligations and meet the expectations of their customers.
“We welcome this injection of extra equity by investors as a signal of Thames Water’s intent to get their house in order. We also welcome the increase in expenditure over the five year period to 2025, from £9.6bn to £11.5bn, to help improve performance and accelerate the company’s turnaround.
“Our discussions over the last year with Thames Water’s chair, Ian Marchant, and CEO, Sarah Bentley, about the need to strengthen the company’s financial resilience have been constructive. Thames Water still has many issues to address to meet the service and resilience levels we expect, but seeing its shareholders putting in additional investment will help the management team to make the progress needed to deliver on its transformation plan.”
This is the second major additional investment into a water company over the past year, following the announcement that Southern Water secured extra investment of £1bn to help transform their performance.
Latest News from
Ofwat launches investigation into South East Water's supply resilience17/11/2023 10:25:00
Ofwat has opened an enforcement case into South East Water to investigate whether it has failed to develop and maintain an efficient water supply system.
Ofwat confirms majority of companies will return money to customers15/11/2023 10:25:00
Ofwat yesterday confirmed the financial penalties and payments for all water companies for the 2022-23 year, with the majority of companies having to return money to customers.
Ofwat sets out details on crack down on exec pay08/11/2023 16:20:00
Ofwat has published its assessment of how performance related pay awarded to water company executives during 2022-23 was aligned to delivery for customers and the environment, and overall company performance. The report looks at the 16 largest companies in England and Wales and is the latest step taken by the regulator in its crack down on inappropriate pay outs in the sector.
Ofwat welcomes £4.6bn of investment to the water sector26/10/2023 12:15:00
The water sector has attracted £4.6bn in additional money from shareholders since 2020, helping to improve the financial resilience of water companies and help fund increased investment for the 2024 price review, according to Ofwat.
Ofwat calls on water companies to prove to customers they can deliver on their promises to clean up Britain's rivers and seas19/10/2023 16:10:00
Ofwat is calling on water companies to use the next 12 months to prove to customers that they can deliver better service and improve the environment. The latest Water Company Performance Report showed that after three years of the 2020-25 period, 13 out of the 17 water and wastewater companies had not spent their forecast enhancement allowance
Water companies must deliver a step change in performance and investment03/10/2023 13:15:00
Companies yesterday submited their plans for the next price review period from 2025-2030 to Ofwat.
Water companies to return £114m to customers for under-performance27/09/2023 12:05:00
Under-performance by the majority of water and wastewater companies in England and Wales, will mean companies have to return £114m to customers next year.
Ofwat’s Innovation Fund seeks bold and ambitious entries to Water Breakthrough Challenge 405/09/2023 12:15:00
5 September 2023 (London) – Ofwat, the economic regulator for the water sector in England and Wales, is calling on water companies with bold and innovative projects to solve some of the water sector’s biggest challenges to apply to win the fourth Water Breakthrough Challenge.