Thames Water is in a race to find extra cash after its investors said they would not give the struggling water giant extra cash unless bills rise.
The UK’s largest water firm has been pushing for the regulator Ofwat to agree to a substantial increase in water bills over the next five years.
Sources close to Ofwat say it plans to “stick to its guns” and won’t raise bills to address shareholder problems.
Sources close to Ofwat say it plans to “stick to its guns” and won’t raise bills to address shareholder problems.
Regardless of what happens, water supplies will continue as normal.
Thames Water drew up a turnaround plan last summer which asked for a 40% rise in bills over the next five years. But it is now understood shareholders want to see even higher bill rises as a condition of injecting more money.
Investors were due to pump in almost £4bn into the business over the next two years, but have withheld the first payment – due at the end of March – saying its turnaround plan is “uninvestible”.
The government has previously said it is ready to take over Thames Water, which is the UK’s largest water company, in the event that it collapses. It serves 15 million households, mostly across London and parts of southern England.
The regulator insists that even without the additional capital, the Thames Water operating company will not need to be nationalised immediately as it is still generating enough money to keep it going day-to-day for up to 18 months.
Thames Water is in a race to find extra cash after its investors said they would not give the struggling water giant extra cash unless bills rise.
Sources close to Ofwat say it plans to “stick to its guns” and won’t raise bills to address shareholder problems.
The UK’s largest water firm has been pushing for the regulator Ofwat to agree to a substantial increase in water bills over the next five years.
Regardless of what happens, water supplies will continue as normal.
Sources close to Ofwat say it plans to “stick to its guns” and won’t raise bills to address shareholder problems.
Sources close to Ofwat say it plans to “stick to its guns” and won’t raise bills to address shareholder problems.
Regardless of what happens, water supplies will continue as normal.
Thames Water drew up a turnaround plan last summer which asked for a 40% rise in bills over the next five years. But it is now understood shareholders want to see even higher bill rises as a condition of injecting more money.
Investors were due to pump in almost £4bn into the business over the next two years, but have withheld the first payment – due at the end of March – saying its turnaround plan is “uninvestible”.
The government has previously said it is ready to take over Thames Water, which is the UK’s largest water company, in the event that it collapses. It serves 15 million households, mostly across London and parts of southern England.
The regulator insists that even without the additional capital, the Thames Water operating company will not need to be nationalised immediately as it is still generating enough money to keep it going day-to-day for up to 18 months.
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