Ofwat has reported a substantial inflow of £4.6 billion in additional investments from shareholders since 2020.
These investments are seen as a positive step towards improving the financial robustness of water companies and funding increased initiatives for the forthcoming 2024 price review.
Ofwat has highlighted the necessity for water companies to take measures to secure their long-term resilience.
In their most recent report on Monitoring Financial Resilience (MFR) of water companies, it was disclosed that £1.4 billion of the total equity injection occurred during the preceding year.
Significant contributors to this equity injection encompass Thames, which secured £500 million, Yorkshire Water with £400 million, Southern Water with £375 million, Portsmouth Water with £120 million and SES Water with £7 million.
David Black, Chief Executive of Ofwat, stressed the importance of companies maintaining a level of financial headroom to effectively navigate periods of volatility and fulfil their commitments to customers and environmental responsibilities.
Mr Black said: “Where we have seen cause for concern, we have also seen some companies responding to the challenge and we expect them to continue to work on improving their financial resilience.
“This is particularly notable in the cases of Yorkshire Water and Portsmouth Water who last year we had categorised as requiring action. They have taken clear actions and this year, have been moved out of our bottom category. We expect to see more companies following this trend and will continue to closely monitor their progress.”
