LONDON (Reuters) – Britain's Thames Water, fighting for survival, will spend an extra £1.1 billion on environmental projects over the next five years in its latest business plan aimed at winning regulatory support. announced that it proposed to spend $1.36 billion.
The company is struggling under the weight of £16bn of debt, is on the verge of nationalisation, and was plunged into crisis last month when its existing business plans were branded “uninvestable” by its owners.
Under new plans announced on Monday, Thames Water, which supplies water to around a quarter of the UK's population, will see increased spending go towards projects with environmental benefits, which are already set out. It said customer bills would not increase further than the increase.
That may help win the backing of regulator Ofwat, but the company also needs support from shareholders, who refused to invest in a £500m equity lifeline in March.
Thames Water chief executive Chris Weston said the updated business plan focused on customer priorities.
“We will continue to discuss this matter with regulators and stakeholders,” he said in a statement.
The plan does not change the already proposed 40% increase in the bill for the period 2025-2030.
Thames Water needs planning approval by June 12, within the deadline set by Ofwat.
($1 = 0.8077 pounds)
(Reporting by Sarah Young; Editing by Kate Holton)
