Overview

• The agreed plan covers a roughly £123 million penalty for wastewater failures and dividend-rule breaches, with a first instalment of £24.5 million due by September 30.
• Ofwat set a backstop of March 31, 2030 for the remaining balance, which otherwise falls due 30 days after implementation of Thames Water’s restructuring plan or if the company enters special administration.
• Thames Water said the penalty will not be funded through customer bills.
• The company continues to pursue a market-led recapitalisation involving creditor equity and debt haircuts, after securing High Court approval of its restructuring plan earlier this year.
• Ofwat said the arrangement holds the utility to account while recognising its ongoing equity raise, as the government remains ready to use the Special Administration Regime if a rescue is not secured.