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2mo ago

Thames Water Appeals for Higher Bill Increases to Address Financial Crisis

The UK’s largest water supplier seeks approval for a bill hike beyond the 35% already granted, citing urgent funding needs for infrastructure and environmental upgrades.

Thames Water faces around £16bn in debt (Photo: Chris Ratcliffe/Bloomberg)
Thames has demanded that it be allowed to increase bills by 53 per cent but Ofwat says it will have to make do with 35 per cent
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Overview

  • Thames Water has appealed to the Competition and Markets Authority (CMA) to allow bill increases exceeding the 35% rise approved by regulator Ofwat for 2025-2030.
  • The company argues that the current determination hampers its ability to invest in critical infrastructure and environmental improvements, including reducing sewage pollution.
  • Facing a £19 billion debt load, Thames Water risks financial collapse without a £3.3 billion emergency loan, pending a court decision expected soon.
  • Critics, including consumer advocates and politicians, oppose further hikes, citing poor service, environmental failures, and executive bonuses as ongoing concerns.
  • If the company fails to secure funding, it may face temporary nationalization as part of a special administration process to stabilize operations.