Ofwat has told Thames Water that the company needs to raise its own funds after the supplier petitioned to increase customer bills and reduce its fines.
The country’s largest water supplier has been under increased scrutiny lately following a string of worrying reports over financial mismanagement and poor performance. Last year, earnings reports showed its profits had shrunk by a whopping 54 percent, while customer complaints had increased by 13 percent.
The company is currently facing debts totalling £18 billion, although that hasn’t stopped Thames Water bosses from handing out hundreds of millions in dividends over the last few years.
According to The Financial Times, Thames Water’s shareholders were willing to inject a further £3.25 billion into the business – if the regulator allowed it to ramp up customer bills by 40 percent by 2030, while also being lenient on the fines it’s incurred and allowing more dividend payments.
Ofwat said it would not comment directly on the reports, but added: “Thames Water needs to continue to deliver on its turnaround plan to improve its operational and environmental performance.
“It is for the company to secure shareholder backing to improve its financial resilience,” a spokesman added.
So these are clearly uncertain times for Thames Water, which continues to attract attention for all the wrong reasons.
Comparing Water Suppliers
If you’re a Thames Water customer then this news may concern you. After all, the finances of your supplier will have a direct impact on your bills, and learning Thames Water plans to significantly raise charges in the next few years will be a real cause for concern.
For households, sadly there’s not much you can do as your supplier is fixed. However, if you own a business, the UK’s free market rules mean it’s possible to change suppliers.
Here at SwiftSwitch, we believe news like this merely highlights the importance of being able to compare water suppliers to ensure your business is partnering with a reliable water company.
When it comes to finding a reliable, reputable water supplier, it’s clear that some perform better than others.
Customer service, not to mention price, may also be important for you as a business owner, and these factors should all be considered when you’re looking to switch water suppliers.
At SwiftSwitch we offer detailed information on many different suppliers including how they’re performing, so you’ll have all the info you require to make an informed choice.
Another benefit of using a broker like SwiftSwitch is we continually stay informed about all of the latest news and market developments, so if you’re keen to partner with a trusted company that’s providing a reliable service to its customers then we’re here to help.
