Monday, April 22, 2024 15:00 BST
Britain's biggest water company has put forward an investment proposal that could increase customer bills even more than the 40% rise it had already requested.
thames waterThe company, which serves 16 million customers in the south of England, has proposed to increase spending by £1.1 billion and could invest a further £1.9 billion in its network as part of a new business plan, the regulator said. revealed to Ofwat.
But if approved, it could mean bill payers will be billed an extra £19 a year on top of their original plan. Charged more than 40%.
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An even bigger bill?
According to the utility's draft business plan, the bill for the five years to 2030 will be £608 a year, an increase of 40%.
The current average bill is £432.60 per year.
However, if additional investment is allowed, customers could instead end up having to pay 44% more, or £627 a year by 2030.
Thames Water said that while £18.7bn of investment was already proposed, the revised plans would provide an additional £1.1bn for “projects with environmental benefits”.
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The plans require regulatory approval, with Ofwat expected to publish a draft opinion on June 12.
What's happening in Thames Water?
Thames Water faces collapse under the weight of £15bn of debt, forcing it to rethink its business plans.
Investors refused to pump the previously agreed £500m into the business. lead the parent company into default Part of the debt.
Thames Water blamed Ofwat for the incident, saying Ofwat had imposed regulations that made it “uninvestable”.
The government is reportedly drawing up plans to place the water giant under state control if it collapses.
The company had £2.4bn of cash in February, enough to keep it solvent until next year.
It is said to be in talks with existing shareholders including Universities Pension System (USS), Chinese sovereign wealth fund, Canada Pension Fund and BT Pension Plan.
The company has also come under intense scrutiny for failing to meet targets for sewage spills and leaks.
Thames Water said it had discussed its initial business plans “extensively with regulators and key stakeholders”.
An Ofwat spokesperson said: “Since October we have been consulting with all businesses, reviewing their proposed plans and seeking further information.”
“Further information has also been released in recent months clarifying the legal obligations of businesses. We need to revise our spending forecasts to reflect this.”
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