THAMES WATER BILLS SET FOR BIG RISES

19th December 2024 Stuart Higgins

Teddington residents’ Thames Water bills will increase by 35% by 2030 following a decision by the industry regulator, it was announced today.

At the same time the beleaguered water giant – under fire for leaks and sewage controls – was also handed an £18.2 million fine for paying “unjustified” dividends to shareholders.

The average annual bill will rise to £588 by 2030, OFWAT said, £152 more than current levels of £436 a year.

The ruling falls well short of the 59% Thames Water had said it needed in the run-up to the decision, as the embattled water company tries to negotiate a bailout.

The company, which serves about 16 million people in London and the south east including Teddington, where the sewage probelm is a major issue, is in the grip of a funding crisis and needs a £3 billion loan from creditors to keep operating beyond March.

Ofwat said the £18.2 million fine was for paying £158.3 million in dividends to shareholders which it said were not justified.

The regulator said it will make Thames Water hand back £131.3 million of the payments via reductions in customer bills.

OFWAT chief executive David Black said the penalty was “a clear warning to the whole sector” over “unjustified dividend payments”.

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