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HomeRenewablesbusiness planThames Water proposes potential 44% increase in bills

Thames Water proposes potential 44% increase in bills

Thames Water seeks to raise consumer bills by up to 44%, aiming to increase investment.

Thames Water announced on Monday that it has revised its spending plans for the 2025-2030 period following discussions with Ofwat, the industry regulator.

Initially proposing to spend £18.7 billion and increase bills by 40%, the company now plans to invest an additional £1.1 billion, totaling £ 19.8 billion, to address environmental concerns, particularly sewage dumping.

There’s potential for further spending of £1.9 billion, contingent on labour availability, which could bring the total investment to £21.7 billion.

If realised, bills for Thames’s 16 million customers could rise to £627 by 2030, a 44% increase excluding inflation.

Ofwat rejected their initial proposal, leading Kemble Water shareholders to retract a cash injection, prompting default on debt interest payments.

The company said: “As well as allowing Thames Water Utilities Limited (TWUL) to deliver more environmental projects, a rebalancing of operating and capital expenditures means there is no resulting increase in projected customer bills, which are estimated on average to be £608 by 2030.

“TWUL will continue to look for opportunities to deliver more investment in AMP8 and has proposed that a further £1.9 billion of potential investment is placed into a “Deliverability Assessment Mechanism”.

“This means if TWUL was to invest the full £1.9 billion in AMP8, then annual average customer bills would increase further by £19 over that period.”

Energy Live News
Energy Live Newshttps://www.energylivenews.com
This article first appeared on Energy Live News, an award winning news service. Their mission is to give you balanced news, analysis, commentary of energy from their dedicated team of quality journalists and production staff.
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