Thames Water has recently updated its business plan with an additional £1.1 billion in spending on projects aimed at benefiting the environment. Despite this increase in spending, the water utility assures consumers that their bills will not be impacted compared to the previous year’s plan.
In addition to the environmental projects, Thames Water has also proposed a further £1.9 billion in potential investment to reduce sewage spills. However, if this investment goes through, it may result in a £19 increase in bills by 2029-30, bringing them to £627.
This updated plan comes at a critical time for the utility company, with uncertainties surrounding its future. Thames Water had previously submitted a plan to the regulator Ofwat, which included a 40% bill increase. However, concerns arose when the regulator proposed changes to the plan that Thames Water deemed unsustainable.
There were concerns that the government may intervene and take over Thames Water, especially after the utility’s parent company defaulted on some debts. The company emphasized that a reevaluation of operating and capital expenditures would enable them to increase spending without raising bills. In fact, the new plan may see bills slightly lower than what was proposed last year.
Thames Water is set to present the new plan to Ofwat for approval, after engaging in extensive discussions with shareholders. The decision-making process also involved consultations with nearly 20,000 customers, communities, and wider stakeholders.
Chris Weston, the CEO of Thames Water, highlighted the company’s commitment to prioritizing customers’ needs and environmental initiatives. He stated, “Our business plan focuses on our customers’ priorities. As part of the usual ongoing discussions relating to PR24, we’ve now updated it to deliver more projects that will benefit the environment. We will continue to discuss this with our regulators and stakeholders.”
