Biggest UK Water Company, After Filling Rivers W. Shit, Wants 40% Rate Hike, Lower Fines, Keep Paying Dividends
Thames Water has been lobbying the government and regulators to let it increase bills by 40%, pay lower fines for breaches and keep paying out dividends as part of efforts to avert a taxpayer bailout, according to a report. The UK’s largest water company was trying to strike a deal with the watchdog Ofwat that would give it permission to charge customers more to avoid having to be taken over by court-appointed special administrators, the Financial Times reported.
That plan would give Thames Water permission to increase bills by 40% by 2030, while also offering more leniency around regulator fines and rules around the dividends it can pay to shareholders. It comes as the company, which serves more than 15m households, attempts to deal with a debt pile of £14bn and widespread criticism over sewage dumping.
If the government or Ofwat felt that Thames Water was unable to pay its debts it could apply to the high court to invoke the special administration process, in which administrators would be brought in to help manage the company.
Last week, the Department for Environment, Food and Rural Affairs (Defra) updated 30-year-old legislation on the special administration regime, which would allow existing shareholders to retain a stake in the company and make it less likely that failing water companies could be fully renationalised. According to the FT, officials at Defra have in place contingency plans for Thames Water if it collapses, under the name Project Timber. As part of this, it hopes Ofwat would allow “regulatory easements” on the issuing of hefty fines, which would put further pressure on the company.
EDIT
https://www.theguardian.com/business/2024/feb/28/thames-water-lobbying-government-bills-dividends-fines-breaches-taxpayer-bailout