Monday, April 22, 2024 8:00 a.m.
Thames Water this morning announced a £1.1 billion increase in spending plans submitted to water regulator Ofwat following consultation with stakeholders.
In a statement delayed from last week to today, the company said an updated PR24 business plan covering the 2025 to 2030 regulatory period (known as AMP8) had been submitted to industry regulators.
The company said the new plan would take its total capital investment over the period to £19.8 billion, with the funds “directed towards projects with environmental benefits”.
According to the company, these projects include “maintaining safe, high-quality drinking water, ensuring the security of water supplies, delivering further environmental improvements, and addressing the aging of the asset base, climate change, and population growth.” This includes building better network resiliency.
Thames Water was the last water and wastewater company to submit plans for this period, which the regulator requires under the five-year rate review process known as PR24.
Ofwat is expected to publish a draft decision on the scheme in June, with a final decision expected by the end of this year.
The company said that despite the increase in spending, there will likely be no impact on consumer claims outside of plans already filed. According to its forecasts, the average consumer bill, excluding inflation, is expected to rise to £608 by 2030.
These figures do not include inflation, which was estimated at 2% during the control period. Including inflation, bills could rise by more than 40% by 2030.
Thames Water proposed AMP 8 bill profile (2025-2030)
Thames City continues to explore opportunities for further investment in AMP8, proposing to put a further £1.9bn of potential investment into a so-called 'feasibility assessment mechanism'.
The new business plan suggests that if Thames were to invest the full £1.9bn into AMP8, average annual customer bills would increase by a further £19 over that period.
Chris Weston, chief executive of Thames Water, 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. ”
The beleaguered water company is in the eye of a storm over its mounting debt pile and the financial health of its parent company, Kemble Water Holdings.
Nationalization fears have been gaining momentum throughout 2024, culminating last week with reports in the Guardian of secret plans to nationalize the company and move billions of pounds of debt onto the government's books. Reached.
Thames Water has been contacted for comment.
