Thames Water has updated its business plan to spend an extra £1.1 billion on “projects with environmental benefits”, but says the bill will not be higher than the plans it submitted last year.
It also proposed a further £1.9bn of “potential investment” to reduce sewage spills, which would increase the bill by £19 to reach £627 by 2029-30.
The new plan comes at a time when there are serious questions about the utility's future.
Last year, Thames Water submitted plans to regulator Ofwat, which included a 40% increase in tariffs. But last month it said the regulator's proposed changes to the plan would make it “uninvestable”.
This led to fears that the government would intervene in the takeover of Thames Water, causing the water utility's parent company to default on some of its debt.
The report said that by “rebalancing operating and capital expenditures,” utilities could increase spending without increasing their bills. The new plan would actually result in a slightly lower bill than the plan introduced in October.
The new plans will be submitted to Ofwat, which will have to decide whether to approve them or seek broader changes. Thames said it had discussed the plans “thoroughly” with shareholders.
The decision was made after “consultation with our approximately 20,000 customers, the communities in which we operate, and a wide range of stakeholders.”
Chris Weston, CEO of Thames Water, who joined the company last year, said: As part of the regular ongoing discussions related to PR24, he updated PR24 to provide more projects that benefit the environment.
“We will continue to discuss this matter with regulators and stakeholders.”
