The four water companies with the worst finances have been named and shamed by Ofwat.
Thames, Southern, SES and South East were revealed to be the most underperforming water companies in the country, financially-speaking by the regulator, which warned the suppliers were now being monitored closely.
Earlier in the year, it was revealed that Thames Valley had a £14b hole in its finances, putting the company’s future in doubt.
At the time, Ofwat was accused of not doing enough and being complacent in upholding its responsibilities to properly regulate the market – an accusation it rejected.
Ever since, the regulator has vowed to keep a close eye on water company finances and it’s now revealed a list of providers that have “significant issues to address”.
According to Ofwat, the four firms that were named are taking action to strengthen their long-term financial reliance.
Response
After the news was revealed, each of the companies issued a response. Thames Water said its infrastructure had come “under unprecedented pressure” over the past year as a result of record temperatures and a drought, followed by a cold snap. The company also blamed inflation for its poor finances.
“In short, our performance was not as we – or our customers – wanted it to be. Despite this, we are in a robust financial position and maintain a strong liquidity position, including £3.6bn of cash and committed funding,” a spokesperson for Thames Water said.
SES took a more defensive position and said its company was “financially resilient. It also said its shareholders had committed to investing £7m over the next five years which should ease some of the pressure on the company’s finances.
Likewise, Southern Water was upbeat about its performance, insisting the new management team was “continuing to deliver” on a turnaround plan. The company also said that funds from its majority shareholder delivered an additional £550m of equity recently.
Comparing Providers
The latest revelation that four of the country’s biggest water providers are seriously underperforming is a cause for concern for households and businesses across the UK.
The level of service you can expect to receive from your supplier, as well as the amount you pay on your bills, will usually correlate with the financial performance of the company providing your service.
This is why it always pays to shop around whenever you want to switch business water suppliers, especially as a business owner. For anyone who owns a business, bringing the cost of outgoings down is crucial, and so is having access to a steady, reliable water supply.
If you’re a customer of one of the companies above, or you’re in search of a water supplier that meets your needs and preferences, we’re here to help. As a water broker, we have access to hundreds of different tariffs with dozens of water suppliers, and we can help you find the best one for your business.
So to find out how much you could save, speak to us today and we’ll help put you in touch with some of the country’s best-performing suppliers.
