Thames Water, one of the largest water companies in the UK serving nearly a quarter of its population, is experiencing financial instability due to its overwhelming debt, which surpasses £15 billion ($19.5 billion), per Sky News.
Earlier reports said that shareholders were hoping for £500 million ($650 million) in funding by the end of March. However, the company has announced that this expected financial support will not be forthcoming.
In return, Thames Water's Chief Executive, Chris Weston, acknowledged the possibility of customers' bills increasing by up to 40%.
While Weston acknowledged the potential difficulties of raising bills, he stressed the importance of meeting customer demands and preserving environmental sustainability. Unfortunately, any proposed bill hikes would coincide with a growing cost of living, adding further financial pressure on consumers.
The CEO also added that investments, estimated at about $26 billion from 2025 to 2030, are needed to tackle key priorities in line with customer expectations. These include the provision of top-notch drinking water and environmental protection.
However, the problem does not lie with their customers but with their shareholders, who have voiced discontent with the Water Services Regulation Authority or Ofwat for what they perceive as inadequate regulatory backing to help the company during its financial issues.
As a result, shareholders cannot extend further financial aid to Thames Water.
Aside from that, Thames Water is also dealing with fines and investigations because of problems with leaks and dirty sewage, as well as issues with how much they pay their executives and give out dividends.
Following these new developments, Ofwat is urging Thames Water to look into all possible ways to solve their financial issues and do better for their customers.
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