Thames Water Appeals to CMA Over Regulatory Bill Cap Dispute
Utility company seeks to increase customer bills beyond Ofwat's limit amid financial restructuring efforts.
Thames Water has formally appealed to the Competition and Markets Authority (CMA) following a decision by the water regulator Ofwat regarding the limits on charges it can impose on customers over the upcoming five-year period.
The utility company had requested the authority to raise its bills by up to 53% by 2030; however, Ofwat set a cap at 35%.
Consumer advocacy groups have voiced strong concerns regarding Thames Water's intentions, emphasizing that customers are likely to be frustrated by the company's efforts to exceed the already prescribed limit by the regulator.
This situation unfolds as Thames Water awaits a court judgement pertaining to its financial restructuring plan, which aims to unlock £3 billion in emergency funding from its creditors.
The company has indicated that, without this restructuring, it could face insolvency issues by 24 March.
In a statement, Thames Water asserted that its board unanimously determined that Ofwat’s Final Determination for the regulatory period from 2025 to 2030 was inadequate to meet the necessary investment and improvements required to effectively serve its customers, communities, and the environment.
Chairman Sir Adrian Montague articulated that the company’s referral to the CMA was made in the interest of aligning its financial capabilities with customer needs and environmental commitments.
He reiterated the importance of establishing a stable operational framework to support long-term infrastructure improvements necessary for managing growth and addressing climate change impacts.
Thames Water elaborated on its business plan for 2025-2030, which focuses on ensuring safe and resilient water supplies, enhancing performance, and addressing stakeholder priorities.
Despite the appeal process, Thames Water has confirmed that its investment plans for the initial year of the new regulatory period will remain unaffected, and there will be no immediate alterations to customer bill amounts.
Mike Keil, the chief executive of the Consumer Council for Water (CCW), expressed dissatisfaction with Thames Water's push for additional bill increases, highlighting that customers are already facing substantial financial strains.
He underscored that the company’s historical service delivery issues and customer complaint records raise questions regarding its trustworthiness in managing increased financial burdens.
Keil reaffirmed the commitment of the CCW to advocate for customer perspectives during the appeal process.
The utility company had requested the authority to raise its bills by up to 53% by 2030; however, Ofwat set a cap at 35%.
Consumer advocacy groups have voiced strong concerns regarding Thames Water's intentions, emphasizing that customers are likely to be frustrated by the company's efforts to exceed the already prescribed limit by the regulator.
This situation unfolds as Thames Water awaits a court judgement pertaining to its financial restructuring plan, which aims to unlock £3 billion in emergency funding from its creditors.
The company has indicated that, without this restructuring, it could face insolvency issues by 24 March.
In a statement, Thames Water asserted that its board unanimously determined that Ofwat’s Final Determination for the regulatory period from 2025 to 2030 was inadequate to meet the necessary investment and improvements required to effectively serve its customers, communities, and the environment.
Chairman Sir Adrian Montague articulated that the company’s referral to the CMA was made in the interest of aligning its financial capabilities with customer needs and environmental commitments.
He reiterated the importance of establishing a stable operational framework to support long-term infrastructure improvements necessary for managing growth and addressing climate change impacts.
Thames Water elaborated on its business plan for 2025-2030, which focuses on ensuring safe and resilient water supplies, enhancing performance, and addressing stakeholder priorities.
Despite the appeal process, Thames Water has confirmed that its investment plans for the initial year of the new regulatory period will remain unaffected, and there will be no immediate alterations to customer bill amounts.
Mike Keil, the chief executive of the Consumer Council for Water (CCW), expressed dissatisfaction with Thames Water's push for additional bill increases, highlighting that customers are already facing substantial financial strains.
He underscored that the company’s historical service delivery issues and customer complaint records raise questions regarding its trustworthiness in managing increased financial burdens.
Keil reaffirmed the commitment of the CCW to advocate for customer perspectives during the appeal process.
