Thames Water has warned that its annual bill could rise by almost £200 to £627 a year by 2030 for capital projects to clean rivers and prevent sewage spills.
Under new investment plans announced on Monday, the beleaguered power company has announced it will cut its daily spending to spend an extra £1.1bn on environmental projects between 2025 and 2030. As a result, the total expenditure will exceed five years. 19.8 billion pounds per year.
By cutting costs elsewhere, the company said its 16 million customers in London and Thames Valley would see their bills rise by 40% instead of the feared 56%, reducing their bills from the current £432 a year. announced that it would be lowered. Up to 608 lbs.
But a further £1.9bn of “potential investment” in reducing sewage spills would push the bill an additional £19 higher, reaching £627 by 2029-30.
Thames Water's main daily expenses are staff, maintenance, energy and raw materials.
It is understood that Standard is not planning any job cuts.
Chris Weston, chief executive of Thames Water, said: As part of our regular ongoing discussions, we have updated this version to bring you more projects that benefit the environment.
“We will continue to discuss this matter with regulators and stakeholders.” Regulator Ofwat will respond to the plan on June 12 and reveal whether it has “intent” to approve it. It's planned.
Thames Water submitted initial plans to Ofwat in October, including a 40% increase in tariffs. Alongside this plan, he was aiming to raise £750m from his nine shareholders.
However, shareholders withdrew from the funding last month, saying Ofwat would not provide the “necessary regulatory support” for its five-year plan, making it “uninvestable”.
The question of whether Thames will get the funding is by no means certain, given that the difference between Thames shareholders and Ofwat was over “regulatory support” such as fines for sewage spills.
If funding is not provided, the Thames could be nationalized through a special management regime. Parent company Kemble defaulted on some debts last week due to funding suspension.
Sarah Olney, the Liberal Democrat MP for Richmond Park, said today she would introduce legislation to create special management for the River Thames.
She said: “This plan is a travesty and the government must now step in to hold this big polluting company accountable.”
Thames Water shareholders declined to comment on the plans.
Mike Keel, chief executive of the Water Consumers' Council, said: “On the surface, the proposed further investment from Thames Water is a positive step for customers who have endured some of the worst customer service in the sector. ” he said.
“We should not lose sight of the fact that only 16% of customers thought our proposed five-year rate increase was affordable. It doesn't seem to be relieving.”
