I'm in trouble thames water announced new plans to increase spending and investment in its network, but warned that this could cause customers' bills to jump by 44%.
The group, which is struggling to survive amid a funding crisis, has proposed increasing spending by £1.1bn and may invest a further £1.9bn into its network as part of a new business plan, regulator Ofwat said. revealed.
The UK's biggest water company, with 16 million customers in London and the Thames Valley region, will see spending rise to £19.8 billion in its new five-year business plan to 2030, with the surplus to go towards environmental projects. He said it would be allocated.
However, it added that potential additional investment of £1.9bn in the network would mean the average customer bill would increase by a further £19 over five years, on top of the 40% rise already planned.
If Ofwat implements its full plans, customers' bills will rise to £627 a year by 2030.
Chris Weston, chief executive of Thames Water, said:
“As part of our regular ongoing discussions on the (business plan), we have updated the plan to deliver more projects that benefit the environment.
“We will continue to discuss this matter with regulators and stakeholders.”
Thames Water is facing collapse under the weight of £15bn of debt and is being forced to rethink its business plan to avoid collapse.
Investors have refused to inject the money needed to fill the funding gap, and reports suggest the government is working on plans to effectively nationalize the water giant. .
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