The UK’s biggest water firm, which serves 16 million customers, is reportedly drawing up a revised five-year spending plan
Thames Water is reportedly on the brink of unveiling a revamped business plan in the coming days, as it desperately seeks additional funds to keep its operations running, insiders have revealed.
The UK’s largest water supplier, catering to 16 million customers, is said to be finalising a revised five-year financial strategy. Board members are poised to gather this Thursday with the aim of giving the green light to the new plan, with ambitions to release it publicly by Friday, Bloomberg reported.
Previously in October, Thames Water had disclosed ambitions to hike customer charges by 40% to back an £18.7billion investment scheme. But it said water regulator Ofwat had imposed regulations on the plan which made it “uninvestable”.
This regulatory squeeze has only exacerbated Thames Water’s financial woes, leading to investors withdrawing a critical £500million rescue package due to be paid at the end of April. Adding to the company’s troubles, Kemble Water Finance Limited, the parent company of Thames Water, told creditors just this month that it had defaulted on some of its debts after failing to make an interest payment.
Now, it appears Thames Water is gearing up to court lenders once again, potentially adding to its already hefty net debt pile of nearly £15billion, all while facing fierce criticism for not meeting sewage spill and leakage benchmarks. Thames Water needs funding to fuel its revival strategy. It it aiming to hit targets for customers, environmental standards and shareholders in the coming years.
Ofwat, the watchdog, is closely examining these proposals and is set to release its preliminary findings come June. Despite the financial turbulence, Thames Water has consistently assured that it’s “business as usual” for the utility firm. The company has chosen not to respond to recent speculations.
