Largest UK Private Water Company Under Investigation After Diverting Millions From Cleanup To Bonuses, Dividends
Thames Water is being investigated by the water regulator for England and Wales, Ofwat, after the struggling company delayed environmental improvement schemes. The investigation was launched after the Guardian revealed that the UK’s largest water company intentionally diverted millions of pounds pledged for environmental clean-ups towards other costs, including bonuses and dividends.
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Ofwat opened an enforcement case into Thames Water to decide whether the company breached its obligations in failing to deliver 100 out of 812 schemes it was supposed to put in place between 2020 and 2025. These environmental measures are part of the water industry national environmental programme (Winep) and they include protecting and enhancing rivers, upgrading sewage systems to reduce spills, cutting the amount of water abstracted from rivers and improving the safety and quality of designated bathing sites.
Water companies have to deliver these on time as part of their statutory requirements with the regulator. Failure to do so means enforcement action can be taken, including the imposition of fines. The Winep deal is a condition for water companies being able to increase bills. Water bills in England and Wales will rise by 36% on average over the next five years, with Ofwat allowing Thames to raise them by 35%. However, the company, which is on the verge of financial collapse, is considering appealing against that decision, after it asked for a 59% increase.
Lynn Parker, the senior director for enforcement at Ofwat, said: “Customers have paid for Thames Water to carry out these essential environmental schemes. We take any indication that water companies are not meeting their legal obligations very seriously. Therefore, we have launched an investigation to understand whether the delayed delivery of environmental schemes means that Thames Water has breached its obligations.”
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https://www.theguardian.com/business/2025/feb/12/regulator-investigates-thames-water-over-delayed-environmental-schemes
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